Hangzhou Shangcheng District Urban Construction Investment Group completes US dollar bond issuance

Hangzhou Shangcheng District Urban Construction Investment Group [杭州上城区城市建设投资集团有限公司] successfully issued US dollar bonds, raising a total of USD 825 million over three past years to expand its financing channels amidst tightening domestic conditions. The initiative aimed to fund project construction, debt repayment, and operational capital supplementation, thereby enhancing the company's presence in international markets and facilitating access to global capital.

Legal counsel

Wang Yizhou and his team from Zhejiang Zeda Law Firm were commissioned to provide legal services for the bond issuance, spanning from July 2022 to April 2024.

Notably, the issuance of a USD 300 million bond in 2022 not only was substantial in size but also achieved a record-low pricing for a keepwell structure issued by a non-provincial state-owned enterprise in Zhejiang during that year.

Key aspects

(1) First 364-day keepwell structure issuance in Zhejiang Province

In a challenging international environment with high interest rates, this is the first 364-day keepwell structure issuance in Zhejiang and the first attempt by a state-owned enterprise in Shangcheng District to issue US dollar bonds following the 2021 administrative division adjustment in Hangzhou. The legal team navigated cost reduction and regulatory compliance, preparing application documents for the National Development and Reform Commission and refining internal procedural documents and submission materials for the foreign exchange administration.

(2) Overcoming challenges in project preparation

The preparation phase involved complex and burdensome tasks, especially due to potential defects in real estate information which added significant difficulty and uncertainty. Wang Yizhou and his legal team maintained close communication with the company, efficiently organising various draft materials and conducting thorough inquiries at the real estate registration centre to ensure the accuracy of the information.

(3) Efficient coordination of multiple resources

With time constraints, unclear policies, and complex draft materials, the legal team swiftly mobilised resources, advancing legal opinions and key schedules while maintaining close communication with overseas lawyers. This coordination helped overcome time zone differences and ensured seamless information exchange, allowing for steady project progression under pressure.

案例链接：https://www.legaloneglobal.com/deal/d-1730083396089