Ashurst assisted enterprises from China's Chengdu- Chongqing Economic Circle (成渝地区双城经济圈) in their successful issuance of Free- Trade-Zone bonds

Global law firm Ashurst has recently assisted enterprises in the Chengdu-Chongqing Economic Circle in two successful issuances of Free-Trade-Zone bonds, including (1) advising the Joint Lead Managers and the Trustee as the international counsel on the issuance of CNY280 million 4.3% Credit Enhanced Bonds due 2025, issued by Chengdu Inland Port Hub Investment & Development (Group) Co., Ltd. and backed by an irrevocable standby letter of credit issued by Bank of Shanghai Co., Ltd., Chengdu Branch; and (2) advising the Joint Lead Managers as the international counsel on the issuance CNY266 million 4.7% Credit Enhanced Bonds due 2025 issued by Chongqing Bazhou Cultural Tourism Industry Group Co., Ltd., with the benefit of an irrevocable Standby Letter of Credit issued by Evergrowing Bank Co. Ltd Chongqing Branch.

Chengdu Inland Port Hub Investment & Development Group is a Chinese state-owned enterprise and it is a key platform responsible for the investment and development of municipal infrastructure projects in the Qingbaijiang District, Chengdu and the construction and operation of projects relating to the Chengdu International Railway Port. This transaction has set the record for the lowest coupon rate in relation to a Free-Trade-Zone bond issued by a Chengdu enterprise. Chongqing Bazhou Cultural Tourism Industry Group is a key state-owned entity for the infrastructure construction, investment and financing in the Banan District, Chongqing. Since its establishment in 2012, the company has played an important role in the urban development, social and economic advancement of the region by undertaking a number of strategically important urban infrastructure construction and public facilities improvement projects. It is also a major water supplier in the Banan District. This transaction is also the first Free-Trade-Zone bond issued by a Chongqing enterprise.

China's Free-Trade-Zone bonds are an important attempt to open up its bond market and a bridge connecting the onshore and offshore markets. In the context of the recent evolvement of international financial market, Renminbi bonds issued in the China (Shanghai) Pilot Free Trade Zone have flourished due to factors such as more flexible regulatory measures, comparatively lower costs and the ability to avoid exchange rate risks. 

Lead partner Jessica Li commented: "The Chengdu-Chongqing Economic Circle is located at the intersection of China's "Belt and Road" and the Yangtze River Economic Belt. It is the starting point of the New International Land-Sea Trade Corridor in Western China, and has the unique advantage of connecting the South-West China with the North-West China, as well as connecting East Asia, South-East Asia and South Asia. The Chengdu-Chongqing Economic Circle has an important strategic role to play in China's future development, and we are very delighted to have advised on two strategically important transactions in the region and supported Chinese enterprises on their financing and the building up of their international profiles."

The transactions were led by partner Jessica Li, supported by Yixuan Pan, Thomas Yau, Jianping Wang, Claire Chen, Flora Cheung, Helen Kwok and Eleanor Zhao.