Shanghai-based Attorneys Provide Service for First SME Private Placement Bond Issue

On June 5 2012, Dacheng’s Shanghai office was entrusted by Jiangsu Best Home Group to act as legal counsel for its small- and medium-sized enterprise (“SME”) private placement bond issue. A project team composed of attorneys Huang Kaijun, Xu Dan, Dong Mingjun provided comprehensive service for the large-scale non-SOE on China’s first such bond issue.
 
The issue of privately placed SME bonds, under the guidance of CSRC, is innovative in many ways compared with ordinary forms of financing. The low cost of issue (about 13% of composite cost of capital), short term (two or three months) and low entry threshold (catering specifically to micro-, small- and medium-sized enterprises) opens up a new channel for SMEs to access the capital market.
 
The Shanghai attorneys, by working closely with local securities traders and investment institutions with whom they have maintained long-time partnership, delivered professional, timely and effective services for the issuer. Their effort was commended by the client.