Recently, Dacheng senior partner Liu Yan and attorney Qiao Xiaohua advised Metallurgical Corporation of China Ltd. on the issuance of three rounds of super & short-term commercial papers and three rounds of short-term financing bills for 2013. The former raised RMB10bn in total and the latter RMB8.9bn.
 
Super & short-term commercial papers (SCPs) are short-term financing bonds issued by high-credit-rating non-financial legal entities at the inter-bank bond market with a maturity of no more than 270 days. SCPs, as a money market instrument, are characterized by registration efficiency, distribution efficiency, simple disclosure and flexible use of capital, compared with other debt financing instruments. They have a useful role to play in widening corporate direct debt financing channels, and improving corporate liquidity and financial management.
 
Short-term financing bills are a type of security issued at the interbank bond market according to certain requirements and procedures, where the issuer promises to pay back principal and interest within a time limit without offering anything as collateral. In China, “Administrative Measures for Debt Financing Instruments of Non-Financial Enterprises in the Inter-bank Bond Market” has stipulated relevant requirements and procedures for issuers. They are a means of direct short-term (within one year) fundraising through which large amount of low-cost capital can be pooled. They can also potentially raise the issuer’s creditworthiness and reputation.
 
Metallurgical Corporation of China Ltd (“MCC”), founded by China Metallurgical Group Corporation and Baosteel as a joint-stock entity, is a giant multi-specialty, cross-sector and cross-border enterprise group engaged mainly in engineering contracting, resource exploitation, equipment manufacturing and property development. It has a solid background in metallurgical construction, whereas its core competitiveness lies in technological innovation and industrialization. MCC is one of the world’s largest engineering contractors and China’s longest established and strongest metallurgical engineering contractor in terms of design and construction capabilities. It owns China Nonferrous Engineering Co., Ltd., one of the largest nonferrous metallurgy designing institutes in China, which has provided services such as planning, design, construction to a number of large- to medium-sized nonferrous metal resources enterprises. While consolidating and developing its traditional engineering contracting business, MCC also expands into resource exploitation, equipment manufacturing and property development to make the best out of its strengths in technology, capital and size. In so doing, it manages to form a business layout that features relevance, complementation and good synergistic effect. Besides, MCC also engages in offshore resource exploitation and has acquired mining rights in numerous projects. Except for exploiting metallic ores such as iron, copper and nickel, it is also capable of processing zinc, lead and copper and producing polycrystalline silicon. Starting in the 1980s, MCC has been actively expanding business overseas. It quickens its pace of developing offshore engineering contracting and resource exploitation particularly since China entered WTO.