King & Wood Mallesons has advised Weichai Power Co., Ltd. (Weichai Power) as its international counsel on its offering of US$400,000,000 4.125% guaranteed bonds due 2020. The bonds are issued by Weichai International Hong Kong Energy Group Co., Limited, a wholly-owned subsidiary of Weichai Power, and are unconditionally and irrevocably guaranteed by Weichai Power. The bonds will be listed on the Singapore Exchange (SGX).

Weichai Power is one of the leading manufacturers of automotive and equipment products in China. It is ranked No. 1 in domestic sales of engines for use in heavy-duty trucks in China and is the largest supplier of diesel engines used for heavy-duty trucks and wheel loaders with a load capacity of five tonnes in China. The Group is considered as one of the most important state-owned enterprises in Shandong Province and is the backbone of Shandong’s industrial development. Weichai Power specializes in the research, development and manufacturing of powertrain products, heavy-duty trucks construction machinery and related components. Weichai Power manufactures and sells its products across China and more than 100 overseas countries.

Commenting on the deal, partner Hao Zhou said, “We are delighted to have had the opportunity to advise Weichai Power on this significant transaction. This transaction was Weichai Power’s debut international bond issue. It also marked the very first transaction that was successfully completed with timely registration filed with the National Development and Reform Commission (NDRC) under the new regulatory scheme imposed by Circular 2044 effective on 14 September 2015.”

The KWM team was led by Hong Kong-based partner Hao Zhou, supported by partner Richard Mazzochi, senior associate Michael Lu and associate Anran Zhou.