Zhejiang Geely’s €400mn exchangeable bonds Offering

King & Wood Mallesons (KWM) advised Zhejiang Geely Holding Group Company Limited (Zhejiang Geely) on the issuance of €400 million zero coupon guaranteed exchangeable bonds due 2024 by Geely Sweden Financials Holding AB (publ).

The bonds are guaranteed by Zhejiang Geely and are exchangeable into the Series B shares of AB Volvo (publ) that are listed on the NASDAQ OMX Stockholm Stock Exchange. This marks the first issuance of equity-linked securities by a Chinese automotive manufacturer exchangeable into a large public company listed in Europe.

Zhejiang Geely is the sole private automotive production company among the top ten automakers in China. It operates a vast number of well-known international brands including Geely Auto, Lynk & Co, Volvo Cars, Polestar, PROTON, Lotus, London Electric Vehicle Company, Yuan Cheng Auto, Terrafugia, and Saxo Bank etc.

KWM advised Zhejiang Geely in respect of English and PRC laws. The transaction involved the collaboration between the Hong Kong and Shenzhen offices. The Hong Kong team was led by partners Hao Zhou (Picture) and Michael Lu, with support from counsel Ian Hardee and associate Bei Lu. The PRC team was led by partner Yujia Pan with support from Tingting Yao, Ying Yang and Yingxuan Cai.

Involved fees earner: Ian Hardee – King & Wood Mallesons; Michael Lu – King & Wood Mallesons; Pan Yujia – King & Wood Mallesons; Hao Zhou – King & Wood Mallesons;

Law Firms: King & Wood Mallesons;

Clients: Zhejiang Geely Holding Group Co., Ltd.;

Author: Michael Patrini