Issuing perpetual bonds has become an attractive option for Chinese companies, but there are legal issues to be aware of, an expert has warned.
King & Wood Mallesons (KWM) recently acted as international counsel for Weichai Power on its US$775 million 3.75% senior perpetual bond offering, which the firm said was the largest such offering to date by a PRC company.
ZHOU HAO
“The first thing that potential Chinese issuers need to know is perpetual bonds are generally priced with a projected buyback date, despite what the term ‘perpetual’ may suggest,” Zhou Hao, a partner at KWM in Hong Kong, told China Business Law Journal.
