Linklaters has advised DBS Bank Ltd. and Haitong International Securities Company Limited in connection with the CNY1 billion 6.40 per cent. Guaranteed Bonds due 2017 issued by Bohai General Capital Ltd and guaranteed by Bohai Steel Group Co., Ltd.

This is the first CNY-denominated bond issue guaranteed by a PRC company issued outside China, since the State Administration of Foreign Exchange (“SAFE”) regulations were relaxed in June 2014 to allow Chinese onshore companies to guarantee offshore bonds without prior SAFE approval. The Bonds were sold under Regulation S and were listed on the Hong Kong Stock Exchange.

The Linklaters team was led by partner Hwang Hwa Sim, with support from managing associate Jini Lee.

“The flexibility under the new SAFE regulations has given bond investors more assurance that onshore companies in the PRC will be able to transfer funds in a timely manner to offshore bond issuers. This issuance of a directly guaranteed CNY-denominated bond is another important milestone in the development of the offshore RMB bond market and the internationalisation of the China capital markets. We have been anticipating a wave of these transactions and no doubt more will follow in the coming months,”  said Hwang Hwa Sim.