Clifford Chance

Clifford Chance advises on three new bonds in difficult market conditions

Leading international law firm Clifford Chance has advised on three bond offerings in Hong Kong as part of a busy July for the firm's capital markets team.

The three latest issues – the Hong Kong Government's iBonds, China Resources Land's US$ senior notes, and advising the managers and bookrunners of MCC Holdings' US$ guaranteed notes – bring the total of debt on which the firm has advised in July to US$2.37 billion, a month marked by volatility and uncertainty in the credit markets.

Other notable deals for the team in July included Korea Hydro and Nuclear Power's US$500 million ten year notes and Korea South-East Power Co., Ltd's US$300 million 3.625 per cent five year notes.

Clifford Chance's Head of Capital Markets in Asia Pacific, Crawford Brickley said: "We're delighted with the volume of transactions that our capital markets team has handled so far this summer – not only in the key markets of Hong Kong and Singapore, but also jurisdictions such as Korea, Malaysia and India."

"Despite volatility in the global financial markets for issuers and investors, Asia Pacific markets remained active in July," said Hong Kong partner Connie Heng. "We are yet to gauge the exact effect of the more recent market downturn on issuers in this region."

The most recent transactions on which the team advised are listed below:

Hong Kong iBonds – advised the co-arrangers, Bank of China (Hong Kong) Limited and The Hongkong and Shanghai Banking Corporation Limited on the Hong Kong Government's issue of retail iBonds due 2014. These have a semi-annual interest payment linked to year-on-year rates of change in the 2009/10-based Composite Consumer Price Index for the six most recent preceding months, subject to a 1 per cent minimum interest rate. Partners Connie Heng and Matt Fairclough advised on the deal assisted by associate Mark Chan.

China Resource Land's Rule 144A/Reg S senior notes – advised the issuer, China Resources Land Limited, on its US$750 million 4.625 per cent senior notes due 2016 issuance pursuant to Rule 144A/Reg S. The notes are listed on the main board of the Singapore Stock Exchange. China Resources Land is a leading property development and investment company and a subsidiary of China Resources Holdings, one of the PRC's largest state-owned enterprises. Partner Stewart Dunlop led the team supported by consultant Julian Perlmutter, senior associate Rong Chen and assistant Xiaowen Zhu.

MCC senior notes –  advised the joint lead managers and joint bookrunners, Morgan Stanley, HSBC, Barclays Capital and Goldman Sachs, on MCC Holdings (Hong Kong) Corporation Limited's issuance of US$500 million 4.875 per notes due 2016. The notes are guaranteed by its parent, engineering and construction conglomerate China Metallurgical Group Corporation. Partner Connie Heng led the team, assisted by senior associate Angela Chan and Beijing associates Wang Zhong and Li Lin.