Hong Kong – 4 May 2004 – LAWFUEL – Global law firm Clifford Chance has advised HSBC and Citigroup on the HK$6 billion securitisation of the toll revenues generated by the Hong Kong SAR Government-owned bridges and tunnels.
The transaction, due to close in early May, involved the issue of three tranches of Hong Kong dollar denominated Retail Bonds and two classes of Hong Kong dollar denominated Institutional Notes, all of which are listed on the Hong Kong Stock Exchange, by a Hong Kong incorporated company wholly owned on behalf of the Hong Kong SAR Government.
Clifford Chance’s Hong Kong office advised on the deal and assisted with regulatory issues in relation to the issue of the Retail Bonds and the Institutional Notes with the Hong Kong Stock Exchange and the Securities and Futures Commission, and structuring rights and controls over toll revenue and recourse rights against the Hong Kong SAR Government in certain circumstances. The Department of Justice of the Hong Kong SAR Government represented the Issuer and the Hong Kong SAR Government.
The Clifford Chance team comprised of Capital Markets partners Stephen Roith, Paul Kruger and Mary Matson, Finance partners Huw Jenkins and Wang Wai-Li, assistants Gareth Old, Connie Heng, Amy Cheung, Shireen Khoo, Albert Tsang, Vicci Lau and Stella Ling. Finance partner Patrick O’Connor, assisted by Tony Oakes, acted for HSBC Trustee (Hong Kong) Limited as trustee.
Stephen Roith commented:
“This is the first transaction of its kind in Hong Kong, involving the HKSAR government bringing a novel asset class to retail and institutional investors. We are delighted to have been involved in this landmark transaction which will hopefully open up the Hong Kong retail bond market for other complex offerings in the future”.