25 November 2021
Clifford Chance advises Guotai Junan Securities on landmark Yulan bond issuance
Leading international law firm Clifford Chance has advised Guotai Junan Securities Co., Ltd. on the landmark issuance of US$300 million 1.60% Yulan bonds due 2024 under Guotai Junan Holdings Limited's US$3 billion Medium Term Note Programme, guaranteed by Guotai Junan Securities Co., Ltd. The bond issuance is the second transaction under the Yulan bond structure and the first Yulan bond transaction from a non-bank financial institution in the PRC.
Partner David Tsai who led on the transaction said, "We are honoured to have advised Guotai Junan Securities on this landmark transaction under the Yulan bond structure. As a new and accessible asset class, Yulan bonds are a bridge between Chinese companies and international investors. We anticipate this transaction will help to enhance the understanding of and appetite for Yulan bonds, and we expect there will be similar transactions to follow as more Chinese companies look to gain direct exposure to a wider base of international investors.”
David was supported by senior associate Nicholas Mai, legal assistant Michael Cheng and paralegal Donald Chen.
Named after the city flower of Shanghai (magnolia), Yulan Bonds are a new asset class of Chinese corporate bonds denominated in foreign currencies. The structure launched in December 2020 and is designed to enable Chinese issuers to gain direct exposure to a wider foreign investor base, providing access to a greater liquidity pool and delivering improved cost efficiencies.
Guotai Junan Securities Co., Ltd. is an integrated financial services provider and investment bank.