CICC Assists HEC Pharm in Issuance of H-share CB

On Feb. 20, 2019, YiChang HEC ChangJiang Pharmaceutical Co., Ltd. (“HEC Pharm”, the “Company”, or the “Issuer”) successfully closed the issuance of H-share convertible corporate bonds to Blackstone (the “H-share Convertible Corporate Bond”, or the “Issuance”). CICC acted as Sole Placing Agent in the transaction. The USD400 Mn deal marks the first H-share CB issuance of a private enterprise and the largest ever H-share CB issuance of a pharmaceutical company.

The Issuance, as a targeted H-share CB issuance, responded actively to the guidance of Several Opinions on Enabling Finance to Better Serve Private Businesses. The issuance brought positive market sentiment, rising 3.63% on the first day of issuance, with demonstration effect.

CICC successfully assisted the Company to introduce Blackstone, a long-term strategic investor with extensive medical resources and global network, as an exclusive investor. Blackstone is one of the global largest alternative investment firms and had approximately USD440 Bn assets under management as of Jun. 30, 2018. As Blackstone has rich experience and resources in the healthcare sector, it can bring practical experience to HEC Pharm in drug development and procurement, business efficiency, strategic planning, global business alliance and corporate governance. Meanwhile, the cooperation with international investment institution can help HEC Pharm to improve its market image and impact in the international capital market.

Since Jun 2018, CICC, as Sole Placing Agent, has provided professional service for the Issuance, assisted the Company to solve various complicated technical issues over transaction terms setting and took overall responsibilities for obtaining domestic regulatory approval, contributing greatly to the successful issuance and ensuring the maximum benefit of the Issuer.

As China’s leading pharmaceutical manufacturer, HEC Pharm focused on the development, manufacturing and sale of pharmaceutical products in therapeutic areas such as anti-virus, endocrine and metabolic diseases, and cardiovascular diseases, and was listed on HKEX on Dec. 29, 2015. The company has established a large product distribution network in China which produced, promoted and sold a total of approximately 33 pharmaceutical products. In the field of antiviral therapy, HEC Pharm owns a core product called Kewei (generic name: oseltamivir phosphate) capsules and granules, and is currently the only manufacturer of oseltamivir phosphate granules in the PRC market. Its sales volume has ranked 1st in the PRC market in the past two years, with a market share of more than 90%. As pharmaceutical industry is a key area in Made in China 2025 and strategic emerging industries, the Issuance will facilitate HEC Pharm to take the current development opportunities and actively respond to the country's development strategy for the pharmaceutical industry.

CICC has served HEC Group for a long term and engaged in various material transactions of HEC Group and its subsidiaries, including every business sectors, since 2012, such as HEC Tech’s A-share non-public offering in 2013, HEC Pharm’s H-share IPO in 2015 and HEC Tech’s A-share material asset restructuring in 2018. The Issuance represents another milestone capital operation of HEC Group facilitated by CICC.

As a leading investment bank with Chinese roots and international reach, CICC has always been people-oriented with our nation in mind. We will continue to provide top financial value-added services to clients by virtue of the extensive practice in capital market and assist them to achieve strategic goals.