March 13, 2018 – Chengdu Xingcheng Investment Group Limited successfully debuted its high-grade unsecured bonds worth €500 million due 2023 (“The Issuance”). It is the second issuance by Chengdu Xingcheng on the international capital market since its debut of bonds in US dollars by the first Sichuan enterprise in 2016. As the first issuance of notes in Euro in the overseas market by a state-owned enterprise in Southwest China, it also marks the debut of offshore notes issued by a Chinese local firm on Frankfurt Stock Exchange and Central Europe International Stock Exchange. As the trailblazer to seek capital investment on the international market with locked-in low cost financing, its ripple effects reached down deep to other enterprises in Sichuan.
Since its establishment in October 2003, the group has a registered capital of RMB 5.5254
billion and has 8 wholly-owned subsidiaries and holding companies and 4 joint stock companies. Its five main business sectors range from capital management, management of construction project, land consolidation and development, real estate development to asset management. The group has invested in development projects of new urban district covering 56 square km, 14 outer suburban counties, more than 50 villages and towns. As of the end of October 2016, Xingcheng Group has total assets of RMB 70 billion, net assets of RMB 21.2 billion and enjoys a corporate credit rating of AAA with a steady annual average investment of RMB 10 billion and annual profit of RMB 1 billion.
As the issuer’s Chinese attorney, Jingtian & Gongcheng team provided legal service throughout the entire process, which mainly included conducting the due diligence investigation, assisting in reviewing the transaction documents concerning Chinese legal regulations and preparing the bond issuing forms et cetera.