King & Wood Mallesons has advised Yunnan Energy Investment Finance Co. Ltd. (Yunnan Energy) as its international and PRC counsel on its offering of US$300,000,000 3.00% guaranteed bonds due 2019. The bonds is guaranteed by Yunnan Energy Investment (HK) Co. Ltd. with the benefit of a keepwell deed and a deed of equity interest purchase and investment undertaking by Yunnan Provincial Energy Investment Group Co. Ltd..

Yunnan Energy is wholly-owned by the Yunnan Provincial Government and sole energy platform for the Province designated to engage in the investment and development of the energy sector in the Province, as well as energy investment and cooperation with Southeast Asian nations. It is primarily engaged in power generation and sales, coal production and sales, resources trading (including natural gas), financial services and other businesses.

Commenting on the deal, partner Hao Zhou said, “We are delighted to have had the opportunity to advise Yunnan Energy once again on this significant transaction. This transaction is one of many PRC local government financing vehicle (LGFV) issuances King & Wood Mallesons has successfully completed in the past year, and continue to assist clients with.

Since 2015, King & Wood Mallesons’ have advised on ground breaking international bond issuances including Qingdao City Construction Investment (Group) Limited, the investment and financing platform of the Qingdao Municipal Government, on its two bond offerings; and Jiangsu NewHeadline Development Co. Ltd. on the debut high yield bond issuance by a PRC LGFV. Our extensive experience coupled with our integrated capability makes KWM best placed to act for issuers interested in tapping the offshore debt markets.

The KWM international team was led by Hong Kong-based partner Hao Zhou, supported by senior associate Michael Lu, and the PRC team was led by Beijing-based partner Song Yanyan, supported by senior associate Dong Yangguang.