Sidley advised China State Shipbuilding Corporation Limited (CSSC) on its first USD and Euro dual-tranche offering, which is composed of the following: 1) US$485 million 4.125% credit enhanced bonds due 2021 through its indirect wholly-owned subsidiary CSSC Capital One Limited, as the issuer, with the benefit of a USD Keepwell Deed provided by CSSC; and 2) €300 million 1.75% credit enhanced bonds due 2023 through its indirect wholly-owned subsidiary CSSC Capital Two Limited, as the issuer, with the benefit of a Euro Keepwell Deed provided by CSSC. The bonds are pursuant to Regulation S.
This dual-tranche offering is the first of its kind issued by a Chinese shipbuilding company. CSSC is the only central enterprise issuer that has successfully issued a USD and Euro dual-tranche offering backed by the SBLC structure in the past three years. The transaction is also the largest SBLC-structured bond in the period.
CSSC, one of the largest shipping conglomerates in China, is a state-authorized investment institution directly administered by the Central Government of China.
The Sidley team was led by partner Renee Xiong in Hong Kong, with support from partner David Howe in London, senior associate Julia Zhu and associate Scarlet Feng in Hong Kong, as well as associate David Kucharski in London.