DeHeng Advised on TF Securities
– MBEC 2019 Asset-Based Financing Scheme for Accounts Receivable
2019-12-30
On December 12, 2019, China Major Bridge Engineering Co., Ltd. (MBEC) successfully issued the TF Securities – MBEC 2019 Asset-Based Financing Scheme for Accounts Receivable at Shanghai Stock Exchange. The issuance was expected to raise 716 million yuan with a maturity period of 36 months and the method of issuance would be a one-time issuance. The original equity owner was MBEC, the bookrunner was TF Securities and the deficiency payer was China Railway Group Limited.
MBEC is a wholly-owned subsidiary of China Railway Group Limited (A stock code: 601390; H stock code: 0390). It is formerly known as the Major Bridge Engineering Bureau under the Railway Ministry, which was founded to build the Wuhan Yangtze River Bridget with the approval of then Government Administration Council, and it obtained the current name in 2001 after the ownership reform. It is the only contractor and investor in China that integrates bridge scientific research, engineering design, civil construction, and equipment research and development. It has the ability to build a variety of bridges over rivers, lakes, seas, and harsh geological and hydrological environments.
On November 26, the scheme obtained the non-objection letter issued by Shanghai Stock Exchange to raise no more than 716 million yuan. As the scheme's legal counsel, the DeHeng team was led by partner Tan Kunlun and lawyer Qi Xin, with primary support from lawyer Feng Yuejia and paralegal Ma Sitao. They provided whole-process legal services including the design and demonstration of the deal structure, due diligence on basic assets, drafting and revising deal documents and providing the final legal opinions. They also worked closely with the issuer and intermediary agencies and designed a sound deal structure and terms, which has been fully recognized by the issuer and cooperative agencies. They will continue to provide legal services for the follow-up issuance of the scheme.
