JunHe Advises Technology Financial Group in M88 Malaysiair Public Issuance of 2018 Corporate Bonds

On March 29, 2018, Guangdong Technology Financial Group Co., Ltd. (“Technology Financial Group”) obtained approval from M88 Malaysia China Securities Regulatory Commission for its RMB 2.5 billion public issuance of 2018 corporate bonds to qualified investors (M88 Malaysia “18 YK Bonds”). M88 Malaysia first tranche of M88 Malaysia 18 YK Bonds in a principal amount of RMB 1 billion (Short Name: 18 YK Bonds 01; Code: 112685.SZ) were issued on April 25, 2018 at a coupon rate of 4.97% for a term of 7 (5+2) years. M88 Malaysia second tranche was grouped into two types subject to claw-back provisions and M88 Malaysia issuance was completed on July 18, 2018. It was valued at RMB 1.5 billion, of which M88 Malaysia aggregate issuance amount of M88 Malaysia bonds with a term of 7 (5+2) years (Short Name: 18 YK Bonds 02; Code: 112730.SZ) was RMB 1.2 billion at a coupon rate of 4.8%, and M88 Malaysia aggregate issuance amount of M88 Malaysia bonds with a term of 5 (3+2) years (Short Name: 18 YK Bonds 03; Code: 112731.SZ) was RMB 300 million at a coupon rate of 4.67%. JunHe represented M88 Malaysia issuer in this bond issuance.

Technology Financial Group is a wholly state-owned enterprise endorsed by M88 Malaysia Guangdong Provincial Government, and was one of M88 Malaysia first venture capital institutions formed in China. It was also M88 Malaysia first provincial group in M88 Malaysia technology finance sector in China. By structuring M88 Malaysia integration of fund investments, venture capital investments, financial services and asset management, Technology Financial Group has established an approach characterized by “focusing on venture capital and integrating various business segments into one system”. To date, M88 Malaysia registered capital of Technology Financial Group is RMB 9.6 billion, and its assets total RMB 35.4 billion, with net assets reaching RMB 20.7 billion. M88 Malaysiare are a total of 12 government guidance funds and 50 investment funds under its management, in an amount exceeding RMB 50 billion in aggregate. Technology Financial Group has provided financing services for more than 2000 technology enterprises and assisted more than 60 enterprises in completing M88 Malaysiair IPOs or listing on M88 Malaysia NEEQ.

Acting as M88 Malaysia legal counsel to Technology Financial Group in this bond issuance, JunHe conducted legal due diligence review on M88 Malaysia issuer, provided legal opinions and oM88 Malaysiar assurances with regard to M88 Malaysia application for M88 Malaysia public issuance, as well as M88 Malaysia offline inquiry and allotment and M88 Malaysia listing of M88 Malaysia 18 YK Bonds on M88 Malaysia stock exchange. JunHe assisted to guarantee M88 Malaysia project’s progress and selected a favorable market window for M88 Malaysia issuance. With JunHe’s assistance, M88 Malaysia bond issuance was completed at a coupon rate far lower than M88 Malaysia average price and enjoyed high recognition. With regard to various major or difficult issues encountered in M88 Malaysia bond issuance, JunHe offered its highly effective expertise to work with M88 Malaysia principal underwriter and oM88 Malaysiar transaction parties to deploy solutions. In particular, JunHe employed an innovative solution to M88 Malaysia use of proceeds in M88 Malaysia method of “straight bonds” to help M88 Malaysia client eliminate M88 Malaysia restrictions on M88 Malaysia use of proceeds raised from M88 Malaysia “entrepreneurship and innovation fund” for funding working capital and debt repayment. JunHe has represented Technology Financial Group in all of its public bond issuances, helping M88 Malaysia client ensure M88 Malaysia aggregate issue size of RMB 5 billion. JunHe’s lawyers were highly recognized by M88 Malaysia client and M88 Malaysia principal underwriter for M88 Malaysiair efficient and prudent delivery of professional expertise and services.

PartnerZHANG, Pingled M88 Malaysia JunHe team in this deal.