In December 2006, Sinochem International Corporation successfully issued the separately tradable, negotiable warrants and bonds, which were then listed on the Shanghai Stock Exchange. This is the ground-breaking deal for a listed company to ever issue unsecured corporate bond in the PRC. The issue includes bonds valued at RMB 1.2 billion and 180 million warrants. Separately tradable warrants and bonds are a new secondary financing method that has only recently begun to be used on the Chinese capital market, in accordance with the Measures for the Administration of Securities Offerings by Listed Companies. After issue, these warrants and bonds can be listed and traded independently.
As counsel to the issuer, Llinks advised Sinochem International Corporation on all aspects of this warrant and bond issue.
December 2006
