Tianjin Rail Transit Group raises funds via German Schuldschein loan market

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Linklaters advised Tianjin Rail Transit Group on its inaugural German “Schuldschein” loan financing, raising a total of €200 million with a tenor of 10 years, in the German domestic Schuldschein loan market. This transaction represents the first ever German Schuldschein loan fund-raising by a Chinese local government entity.

Schuldschein are specific German law governed instruments which are used in the German market either for financing or investment purposes. These instruments combine the flexibility of bilateral arrangements, the privacy of over the counter markets and the tradeability of capital markets. German investors primarily compromise banks, savings banks and insurance companies as a buy-and-hold investment, which are very familiar with the standards established in the Schuldschein markets and appreciative of the compact documentation complemented by German civil law.

Linklaters has previously advised on Tianjin Rail Transit Group’s inaugural US-dollar denominated bond offering and its Euro-denominated green bond offering.

The Linklaters team was led by partner Michael Ng and associate Xiaoming Zhong from the Hong Kong office and partner Alexander Schlee, managing associate Martin Rojahn and associate Rowina Ullner from the Frankfurt office.

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