W&B assisted Huabao Investment Co., Ltd. (“Huabao”) in the issuance of its 2015 corporate bonds, which was completed in early November 2015.

The size of the offering of the underlying corporate bonds from Huabao was CNY 4 billion, with an interest rate of 3.55% and an offering price of 100 CNY each. The offering was issued offline to qualified investors through book building.

As the flagship of the financial segment of Baosteel, Huabao undertakes the roles of (i) optimizing existing financial resources, (ii) enhancing equity value, and (iii) preserving and adding value to equity capital through PE investment by utilizing the strength of the group’s capital resources and strong background as well as the synergistic effect of its up and downstream resources. Although the group takes iron and steel as its primary business, it also seeks diversified development strategies. This deal is yet another in a series of successful cases represented by W&B during the implementation of the capital operations by the group and its subsidiaries.

After accepting the engagement from Huabao, W&B conducted in-depth due diligence. It also assisted Huabao in drafting legal documents such as the Board Resolution of the Issuer and a Shareholder’s Meeting Resolution. Meanwhile, in accordance with the legislative spirit expressed in the Enterprise Bond Issuance and Transaction Management Measures (the “Measures”) promulgated at the start of 2015, W&B exerted its best efforts to focus on reviewing the compliance of the key points emphasized in the new Measures when it provided its formal Legal Opinion and when it discussed, reviewed and revised the Prospectus, the Trustee Management Agreement and the Rules of Bondholders’ Meetings. These activities were all designed to ensure that the issuance of the bonds complied with the criteria established by the China Securities Regulatory Commission.