Against the backdrop of the opening Chinese economy, many of China's state-owned enterprises, banks and corporates have looked to the bond market for more efficient funding options, resulting in a significant increase in bond deals in Asia this year.

Walkers' partner Kristen Kwok, based in Hong Kong, has been involved in a significant number of these deals which have taken place amid an uptick in overall investment through debt markets. These bond deals typically involve the establishment of a Cayman Islands or BVI company to act as issuer of the bonds, with credit enhancement provided in various forms. These may include guarantees, letters of support, keep-well agreements provided by parent companies or operating subsidiaries and in some cases, on-demand guarantees or standby letters of credit from third party financial institutions. These structures have developed in response to PRC regulatory requirements and restrictions on Chinese onshore companies issuing debt.

Walkers' Hong Kong office has recently advised on a number of such deals, including the following highlights:

State Grid US$3.5 billion Bond Offering

Walkers acted as British Virgin Islands counsel to State Grid Overseas Investment (2014) Limited in connection with its issuance of the US$1.25 billion 2.750% Senior Guaranteed Notes due 2019, the US$1.6 billion 4.125% Senior Guaranteed Notes due 2024 and the US$650 million 4.850% Senior Guaranteed Notes due 2044, all unconditionally and irrevocably guaranteed by State Grid Corporation of China. (Completed in May 2014)

China Cinda Asset Management US$1.5 billion Bond Offering