Clifford Chance

Clifford Chance advises on Hainan Airlines' US$500 bond issuance

Hong Kong: Leading international law firm Clifford Chance has advised BOC International, Deutsche Bank, and JP Morgan as joint lead managers on the issue by Hainan Airlines (Hong Kong) Co. Ltd. of US$500 million 3.625% notes due in 2020. The bonds were backed by a RMB denominated standby letter of credit from the Bank of China, one of the few bond deals with this type of credit enhancement.

Connie Heng, lead partner on the deal said, "This deal is further evidence of innovative credit enhancement structures used by issuers to capture the current buoyant bond market. We're very pleased to be involved in this innovative issuance which has received a positive response."

Connie was assisted by senior associate Linda Cheng and associate Lin Li.

The Capital Markets team has advised on a total of US$3.318 billion in bond transactions since 1 January 2013. These include advising the joint lead managers on the following deals: Agile Properties Holdings Limited's US$700 million 8.25% subordinated perpetual capital securities; Mizar Enterprises Limited's (to be renamed Cheung Kong Bond Securities (03) Limited) US$500 million 5.375% guaranteed senior perpetual securities, guaranteed by Cheung Kong (Holdings) Limited; and Lai Sun Development's US$350 million 5.7% guaranteed notes due 2018.