Deal Watch- 6/20


Posted on June 20, 2011 at 5:06 PM

Freshfields Bruckhaus Deringer, Li & Partners, and King & Wood are advising China Everbright Bank on their most recent financial transaction.  China Everbright Bank, which is already listed in Shanghai, is planning its second listing in Hong Kong.  They expect the listing to raise about $6 billion dollars, more than double its IPO of $2.8 billion in Shanghai.  The bank plans to sell 10.5 billion shares beginning on July 15th.  This second opening will serve to provide the bank with the funds to expand their lending, which is needed due to changes in Chinese regulatory requirements.  China Everbright Bank is not the first bank to do this because of the new regulation, expected to create stricter capital rules with the increase in lending, many opposing banks have also created additional listings to get funding to do the same. 

Baker & McKenzie has advised a Singapore-listed subsidiary of Pacific Andes International Holdings Ltd, Pacific Andes Resources Development Ltd, in its recent issuance of three-year CNY denominated bonds.  DBS Bank Ltd, The Hong Kong & Shanghai Banking Corporation Ltd, and Standard Chartered Bank (HK) Ltd have acted as the joint bookrunners and lead managers in the bond offering.  The transaction which is said to total at a principal amount of $92.57 million, closed on June 2nd.  Partner Brian Spires led the transaction, while Milton Cheng led the Hong Kong team with respect to Hong Kong regulatory compliance aspects. 

Clifford Chance has advised Thailand-based joint venture power development company, Amata B Grimm Power Ltd, in the development and financing of two gas-fired power plants in Thailand.  The two plants will be located in Rayong Province, Thailand, they are referred to as Rayong 1 (123.3 MW) and Rayong 2 (122.4 MW) both gas-fired combined cycle co-generation power plants.  Bangkok Bank and Kasikornbank have provided approximately $258.3 million (US) worth of 20-year syndicated loans towards the project. 

Davis Polk advised Standard Chartered Bank and Credit Suisse Securities (Europe) Ltd in their recent initial purchasing in the Rule 144A/Reg S offering of its US $350 million high-yield notes by Lonking Holdings Ltd.  Lonking Holders Ltd is one of the major manufacturers of construction machinery in the PRC as well as one of the leading manufacturers of wheel loaders.  The advisory team was led by partner William F Barron and Counsels Chan Chen, Gerhard Radtke.  Sidly Austin advised Lonking Holdings Ltd with respect to US and Hong Kong law.  Conyers Dill & Pearman advised Lonking Holdings with respect to BVI and Cayman Islands law and Fujian Lihan Law Firm advised with respect to PRC law.  Jun He Law offices advised the initial purchasers with respect to PRC law. 

Freshfields Bruckhaus Deringer have advised, Morgan Stanely, Goldman Sachs, China International Capital Corporation and the Macquarie Group as the underwriters with respect to Huaneng Renewables  $800 million US global offering of shares and listing on the HKSE.  Huaneng Renewables is a leading Chinese renewable energy company that focuses on wind power generation.  The company is one of the 10 largest wind power firms in the world and is the third largest wind power generation capacity in China.  Partner Calvin Lai led the transaction.   

Herbert Smith and Hiswara Bunjamin & Tandjung, Herbert Smith’s associated Indonesian law firm, advised Macquarie Capital (Singapore) Pte Ltd and Deutsche Bank AG (Hon Kong) in its most recent $289 million US sale of an approximately 10 percent stake in listed PT Harum Energy Tbk (Indonesian coal producer) by PT Karunia Bara Perkasa (controlling shareholder).  This transaction was launched on May 28th and was listed on the Indonesia Stock Exchange to institutional investors.  Partner Kevin Roy and counsel Siddhartha Sivaramakrishnan led this transaction.

Latham & Watkins represented diversified metals and mining company, Vedanta Resources Plc, with respect to its bond offering of $1.65 billion US.  The issuance is a combination of $750 million US 6.75 percent bonds due 2016 and $900 million US 8.25 percent bonds due in 2021.  This transaction was led by partners Rajiv Gupta, Lene Malthasen and Michael Sturrock.

Latham & Watkins represented Indonesia’s state-owned oil and gas company, PT Pertamina (Persero) with respect to its $1 billion US 5.25 percent bond offering due 2021 and a $500 million US 6.5 percent bond offering due 2041.  This transaction was led by partners Michael Sturrock and Clarinda Tjia-Dharmadi.

Milbank, Tweed, Hadly and McCloy advised Mongolia’s biggest cooking coal producer, Mongolian Mining Corp (MMC) in respect to its purchasing of QGX Coal from Kerry Mining.  MMC’s intitial price was $464 million US which was a combination of a cash payment of $100 million, a convertible bond of $85 million and a vender loan of $279 million.  In 18 months MMC will pay a royalty based on the mine’s production exceeding certain thresholds.  There is a total cap on the deal at $950 million.  Kerry Mining is a subsidiary of the Kuok Group which is one of the most diversified conglomerates in Asia.  This transaction was led by Anthony Root and Dieter Yih.

Mori Hamada & Matsumoto advised The Sumitomo Trust and Banking Co Ltd on its memorandum of understanding on May 6th with DBS Bank.  This alliance is structures to deepen cooperation in Asia with respect to business, specifically institutional banking, capital markets and treasury & markets.  This will allow both banks to increase the scope of their business throughout the region.  This collaboration will also extend DBS to better serve their clients in Japan. 

Paul, Hastings, Janofsky & Walker advised an integrated retail real estate management and capital management company, Perennial Real Estate Pte Ltd, with respect to sponsoring Perennial China Retail Trust’s business trust.  From this offering PCRT raised $627 million (US).  This transaction is the third largest IPO on the SGX this year and is the  first pureplay PRC retail development business to be listed on the SGX.  This transaction was led by partner Vivian Lam.  Allen & Gledhill advised Perennial China Retail Trust Management Pte Ltd (the trustee-manager of PCRT), led by partners Long Pee Hua and Jerry Koh.

Slaughter & May advised MTR Corporation LTD in three recent agreements with the Hong Kong Government.  The agreements pertained to the financing, design, operation and construction of the South Island Line railway (estimated to cost $1.6 billion US), the advance works relating to the Shatin to Central Link (estimated cost at $7.7 billion US), as well as the financing, design, operation and construction of the Kwun Tong Line Extension (estimated cost of $680.3 million).  These transactions were led by partner Jason Webber. 

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