On November 15, China Xiongan Group (CXG) successfully issued its first bond. It was the first fund raised by public issuance since the company's establishment, and this will help introduce medium and long-term capital and large volume of funds into Xiongan, laying the foundation for multi-channel financing in the New Area. As a legal advisor to CXG, a Dentons team provided a full scope legal assistance on this issuance.

China Development Bank (CDB) served as the sole underwriter, and the issuer of the debt financing instrument was CXG. The bond was registered with the National Association of Financial Market Institutional Investors (NAFMII), with RMB 20 billion approved quota. The first series of the bond totaled RMB 600 million and carried a coupon rate of 4.4%. The perpetual notes with maturity of 3+N years were oversubscribed 3.35 times.

As introduced by the relevant personnel of the issuer, CXG was established on July 18, 2017 and adopted a five-in-one operation model which integrating investment, financing, development, construction and operation. Under the leadership of the New Area's Party Working Committee and Management Committee, the company is responsible for pushing forward the planning and construction of Xiong'an New Area, and leading the investment and financing, development and construction of the New Area. The funds collected in this issuance will be invested into the construction of the first major infrastructure project – Beijing-Xiongan intercity high-speed railway.

According to the relevant persons from CDB, the bond issuance received strong support from the People's Bank of China and proactive and specific guidance from the NAFMII. The task force of the NAFMII, cooperated with CDB and Dentons in researching, solving key problems, innovating and tailoring, and developed a bond issuance solution that not only suited the urgent financing needs of the CXG, but also met the requirements for the registration and issuance of debt financing instruments – registered once and phased issuance.

Considering the existing financing conditions of CXG and the specific situation that CXG urgently needed funds for its initial construction of the projects, perpetual notes totaled RMB 20 billion were registered for CXG. All funds raised will be used for the construction of the infrastructure in the starting area.

The Dentons team was led by Feng Gang, assisted by Li Shuo. Their service included designing and demonstrating deal structure, conducting legal due diligence on CXG, legal consultation, drafting and revising transaction documents, and issuing an attorney's opinion letter and a due diligence report.