On 16 December 2015, King & Wood Mallesons advised on the successful issuance in China’s interbank market of the registered RMB 3 billion sovereign bonds by the government of the Republic of Korea (ROK or South Korea). The tenor of the bonds is three years, and the coupon rate is 3.00%. The RMB bonds issued by the Republic of Korea (also known as “Panda Bonds”, which are RMB-denominated bonds issued by a non-PRC issuer in the PRC) is the first RMB bonds issued by a foreign sovereign in China, which is a milestone project in the process of the RMB internationalization. This demonstrates KWM’s capabilities in delivering high-quality services and executing innovative cross-border capital market projects.  This also strengthens the leading position of KWM in the market of foreign sovereign RMB bonds.

The issuance of Panda Bonds by the ROK is part of the financial cooperation arrangement agreed upon between the ROK and China when Chinese Premier Li Keqiang visited the ROK in November this year. It expanded the scope of debt products in the Chinese interbank market and promoted the openness of China’s bond market to foreign issuers. Additionally, it strengthens the financial cooperation and deepens the economic and trade ties between the two countries.

KWM acted as the PRC legal counsel for the five joint lead underwriters, including Bank of Communications Co., Ltd., Citi bank (China) Co., Ltd., Goldman Sachs Gao Hua Securities Company Limited, HSBC (China) Company Limited and Standard Chartered Bank (China) Limited KWM advised the joint lead underwriters in all key aspects of this transaction including the preparation of offering documents in English and Chinese.