Clifford Chance advises bookrunners on Galaxy Entertainment Group’s RMB1.38 billion bond

Hong Kong: Leading international law firm Clifford Chance has advised Bank of America Merrill Lynch, BOC International, HSBC and UBS as joint lead managers and bookrunners on the RMB1.38 billion bond issue by Galaxy Entertainment Group Limited.

This is the first issue of a high-yield “dim sum” bond issue in Hong Kong, which was met with strong demand from the investment community.

Hong Kong demand for “dim sum” bonds has been extremely strong over the second half of this year as more and more issuers seek to take advantage of the renminbi’s strength to raise capital at a competitive cost.

Clifford Chance has a wealth of experience in advising on both synthetic (US dollar settled) and “dim sum” RMB bonds, and has advised on a number of the key issues in the market this year, including:

· Clifford Chance advised issuer China Merchants Holdings on the issue of RMB700 million 2.9 per cent bonds due 2013. China Merchants operates across a number of Mainland and international sectors, including financial services, transport and infrastructure, and industrials.

· Clifford Chance advised the joint lead managers on the issue of RMB5 billion fixed and floating rate notes due 2013 by China Development Bank Corporation, China’s leading financing institution. This was a complex issue, with 20 placing banks involved in the fixed rate retail offering.

“Appetite amongst investors and issuers alike for RMB products of all kinds has been a real driver of the Hong Kong capital markets this year, and debt issues of this type are no exception,” said capital markets consultant Matt Fairclough, who led the team on the Galaxy bond issue.

“Following the flurry of investment-grade RMB bond issuances, this first high yield dim sum bond may signal the way for similar debt issues in the next 12 months.”

Matt was assisted by senior associate Angela Chan and associate Esther Wong on this latest transaction.

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