18 May, 2011

 

The Hong Kong and Singapore teams have advised Fosun International Limited ("Fosun"), a long-standing client of Herbert Smith, on its US$300 million Rule 144A/Regulation S offering of high-yield notes.

 

The notes are senior obligations of Fosun and are guaranteed by several of Fosun's offshore subsidiaries. The notes will bear interest at the rate of 7.5% per annum and mature on May 12, 2016.

 

Fosun is one of China's largest privately owned investment holding companies, with a business portfolio comprising pharmaceuticals and healthcare, property, steel, mining, retail, services and other investments. Fosun Group, a wholly-owned subsidiary of Fosun, is a shareholder of a number of public companies, including Shanghai-listed Nanjing Iron & Steel and Fosun Pharma and Hong Kong-listed Sinopharm and Zhaojin Mining.

 

This is the second time Fosun has raised funds in the international capital markets. In 2007, Fosun raised US$1.5 billion in an IPO on the Hong Kong Stock Exchange, one of the largest IPOs in Hong Kong of that year.  

 

Herbert Smith advised Fosun as to matters of US and Hong Kong law. The US team was led by partners Kevin Roy and Melody Chen, assisted by senior associate Siddhartha Sivaramakrishnan and associates Felipe Duque, Jin Kong and Stanley Xie. The Hong Kong team was led by partner Gary Lock, assisted by associate Sum Wai Foong. Herbert Smith finance partner Alexander Aitken also advised on the transaction, assisted by associates Carol Fan and Cecely Hugh.

 

Goldman Sachs (Asia) L.L.C., Standard Chartered Bank and UBS AG, Hong Kong Branch were the joint lead managers and joint bookrunners for the offering.

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