China – LAWFUEL – The Law News Network – Global law firm Clifford Chance has advised the International Finance Corporation (IFC) on its successful application to become one of the first two foreign borrowers to issue renminbi-denominated bonds (RMB Bond) in the Chinese domestic market, in what will be an important step in the further development and expansion of China’s domestic capital market.
The Chinese Ministry of Finance confirmed on 28 September 2005 that China’s State Council had approved the applications by IFC and the Asian Development Bank to issue local currency bonds in accordance with the RMB Bond Issuance Regulations. As part of IFC’s broad strategy to help China broaden and deepen its capital markets, the RMB Bond issue will provide IFC with the means to lend local currency to its clients in China, particularly in respect of private sector projects that IFC has already selected and appraised.
The Clifford Chance team, led by Cao Yanping (Counsel, Shanghai) and supported by Stephen Harder (partner, Shanghai/Beijing), Xia Song (associate, Shanghai) and Stephen Roith (partner, Hong Kong), has been working with IFC on this matter, including the initial research on the regulatory regime of China’s bond market, for over two years.
Ms Cao commented:
“We are proud to have played a part in this groundbreaking development in China’s domestic capital market. It is the culmination of over two years’ working with the International Finance Corporation and the Chinese government and sharing our experience of domestic and international financial markets, and we are delighted with the results.”