Recently, Semiconductor Manufacturing International Corporation ("SMIC") successfully completed the issuance of 5-year US dollar bonds in the global capital market, raising US $600 million in funds at a coupon rate of 2.693%. The issuance is a return of SMIC to the international bond market after 6 years. It has obtained a coupon level of A-rating companies in the TMT industry with the international rating of BBB-.
SMIC, one of the leading foundries in the world, is Mainland China's most advanced and largest foundry, broadest in technology coverage, and most comprehensive in semiconductor manufacturing services. The issuance is the first US dollar bond issuance which only relied on Regulation S this year in the global investment-grade TMT industry. It is also the first US dollar bond public offering by a Chinese semiconductor company since March 2018. In addition, the coupon rate of this bond is 2.693%, which is the lowest coupon rate for US dollar bonds of the same maturity in the global BBB-rated TMT industry since 2017. Besides, the coupon rate is 143.2 basis points narrower than SMIC's 2014 US dollar bond issuance. The final pricing is 37 basis points narrower than the initial price guidance, which is also the largest narrowing of dollar bonds in the Asian TMT industry this year.
As PRC legal advisor for SMIC in China, Llinks provided a full range of legal services for this project including conducting legal due diligence and providing legal opinions.
