Zhong Lun Advised BTMU on Its Successful Issuance of the First Private Placement Financial Panda Bonds
With the professional support of Zhong Lun, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (“BTMU”) as the issuer obtained approval from the People’s Bank of China on 4 January 2018 for BTMU’s issuance of financial bonds denominated in RMB in tranches by way of private placement in the China Inter-bank Bond Market (“Panda Bonds Programme”) and successfully issued the first tranche Panda Bonds (“First Tranche Bonds”) under the Panda Bonds Programme. The issue size of the First Tranche Bonds is RMB 1 billion and the tenor of the bonds is 3 years. This is the first Panda Bonds successfully issued by Japanese issuer and the first private placement financial bonds successfully issued in the China Inter-bank Bond Market.
Acting as the PRC legal counsel of the issuer, Zhong Lun provided thorough legal service to BTMU on its successful establishment of the Panda Bonds Programme as well as the successful issuance of the First Tranche Bonds, including the drafting and negotiation of the full set of the application package and the issue documents for the Panda Bonds Programme and the First Tranche Bonds, and the issuance of PRC legal opinion etc. The Zhong Lun team on this transaction was jointly led by Partner Xianghong (Shirley) WANG and Partner Heng DING, with principal support by Associate Yuanding (Samuel) HE and Associate Chengzhe XU. The lawyers executing the PRC legal opinion for this deal are Partner Xianghong (Shirley) WANG and Associate Yuanding (Samuel) HE. Other lawyers participating in this transaction include Associate Grace CHEN, Associate Baihui LI and Associate Haijie CHEN etc. Partner Peter NIand Associate Mark GAO also provided legal support from PRC tax perspective.
This transaction also marks the latest innovative Panda Bond transaction which Zhong Lun advised international clients following Bank of China (Hong Kong) Limited’s successful issuance of the first Panda Bonds by international commercial bank in the China Inter-bank Bond Market in 2015 (where Zhong Lun acted as the PRC counsel of the issuer), The Ministry of Finance of the Republic of Poland’s successful issuance of the first sovereign Panda Bond by European country in the China Inter-bank Bond Market in 2016 (where Zhong Lun acted as the PRC counsel of the issuer) and the United Company RUSAL Plc’s successful issuance of the first Panda Bonds by foreign enterprise of the countries along the “One Belt and One Road” in the China onshore stock exchange bond market in 2017 (where Zhong Lun acted as the PRC counsel of the underwriter).