Dacheng and Dentons Hong Kong Office worked together to help Luzhou Hang Fa Group successfully issue dim sum bonds

On December 29, 2023, Dacheng with the help of Luzhou Hang Fa Development Investment Group Co., Ltd. (hereinafter referred to as "Luzhou Hang Fa Group", the "Issuer") successfully issued the dim sum bonds with a maturity term of 610 million yuan at an interest rate of 4.8% with a bank standby letter of credit as a credit enhancement measure, and completed the delivery on January 8, 2024. The issued bond is the first standby certificate credit-enhancing dim sum bond of Luzhou, which is the largest issuance scale and the lowest issuance interest rate.

In the successful issuance, Dacheng Team, as the legal services leader and the domestic legal counsel of the Issuer, gave full play to its experience in overseas bond issuance, industry leadership, and other aspects, and assisted the Issuer to identify overseas legal counsel of the Issuer, overseas legal counsel of the underwriter, lawyer for the trustee, and domestic legal counsel of the underwriter, etc. who have high rapport of cooperation and outstanding expertise in their respective fields. The bond issuance is also the first time that Dacheng and Dentons Hong Kong Office have cooperated in the area of dim sum bonds, and achieved positive results. The Dacheng Team is composed of Wei Zhang, Executive Director of Finance Committee, Yunfang Zhang, Partner, Xiuling Zhang, Partner, and Wenjun Zhang, Associate. The legal team in Dentons Hong Kong Office is led by Kenneth Wu, capital markets partner in our Hong Kong office, and includes Ningxin Sun, attorney and attorney.

Dacheng's legal team provided all-round, efficient and professional legal services to facilitate the successful issuance of dim sum bond. The services covered legal due diligence of Luzhou Aeronautics Group and its important subsidiaries, review of issuance circulars and transaction documents, and issuance of PRC legal opinions. The project team communicated and cooperated closely with Luzhou Hang Fa Group and various intermediary institutions to jointly achieve the successful bond issuance.