A&O Shearman supports multiple PRC local governments on RMB15 billion bond issuances

Agnes Tsang, A&O Shearman partner, said: “The bond issuances by Shenzhen Municipal People's Government, the People's Government of Guangdong Province and the People's Government of Hainan Province underscore the growing importance of ESG finance in the Greater Bay Area and Hainan Province, further enhancing Hong Kong as a robust international finance centre. We are proud to support these pioneering efforts, reflecting our commitment to advancing ESG finance, contributing to the region's long-term economic and environmental goals.”

Shenzhen Municipal People’s Government’s RMB7bn offshore bond issuance

The RMB7bn multi-tranche bond issuance by Shenzhen Municipal People’s Government includes:

• RMB900 million 2.15% bonds due 2026
• RMB2.7bn 2.20% bonds due 2027
• RMB2.4bn 2.33% bonds due 2029
• RMB1bn 2.50% bonds due 2034

This issuance marks the fourth consecutive year A&O Shearman has advised Shenzhen’s offshore bond issuance in Hong Kong. The bonds include social bonds, low carbon city themed green bonds, and sustainability bonds, with net proceeds allocated to, among others, eligible projects in accordance with Shenzhen’s Green, Blue, Social and Sustainability Finance Framework. This is the first time that PRC local government has issued a 10-year offshore RMB bonds.

Guangdong Province’s RMB5bn offshore bond issuance

For the first time, the People’s Government of Guangdong Province has issued multi-tranche offshore RMB local government bonds in Hong Kong. The issuance includes:

• RMB2bn 2.08% bonds due 2026
• RMB1.5bn 2.13% bonds due 2027
• RMB1.5bn 2.23% green bonds due 2029

The net proceeds will fund major infrastructure projects in Nansha District of Guangzhou City and municipal and industrial park infrastructure projects in Zhongshan City. The net proceeds of the green bonds will be used for eligible projects in Dongguan City in accordance with Guangdong’s Green Finance Framework.

Hainan Province’s RMB3bn offshore bond issuance

The RMB3bn bonds issued by People’s Government of Hainan Province include:

• RMB1bn 2.07% bonds due 2027
• RMB1bn 2.15% bonds due 2029
• RMB1bn 2.45% bonds due 2034

This issuance marks the third consecutive year A&O Shearman has advised on Hainan’s offshore bond issuance in Hong Kong. The net proceeds of the bonds will be, among others, allocated to finance eligible projects classified under green, social and blue eligible categories in accordance with Hainan's Green, Social, Blue and Sustainability Bonds Framework.

The A&O Shearman team was led by partner Agnes Tsang, with support from Jiayin Yu, Gordon Ng and Eileen Qu.