Clifford Chance

Clifford Chance advises on issuance of Hong Kong's first non-government retail bonds

Leading international law firm Clifford Chance has advised a syndicate of banks on the issuance of Hong Kong's first listed bond by a non-government issuer offered through HKEX’s Central Clearing and Settlement System (CCASS), made available to both retail and institutional investors.

The Reg S bonds issued by the Agricultural Development Bank of China, one of China's three policy banks, include:

• RMB2 billion 3.08 percent retail and institutional bonds due 2020, and
• RMB1 billion 3.23 percent institutional only bonds due 2022.

The syndicate of banks involved in the transaction include:

• Bank of China Limited,
• Bank of China (Hong Kong) Limited,
• Standard Chartered Bank (Hong Kong) Limited,
• Bank of Communications Co., Ltd., Hong Kong Branch,
• China Construction Bank (Asia) Corporation Limited,
• Industrial and Commercial Bank of China (Asia) Limited,
• Agricultural Bank of China Limited Hong Kong Branch,
• BOCOM International Securities Limited,
• Shanghai Pudong Development Bank Co., Ltd., Hong Kong branch,
• The Hongkong and Shanghai Banking Corporation Limited,
• Citigroup Global Markets Limited,
• Mizuho Securities Asia Limited, and
• KGI Asia Limited.

Partner David Tsai led on the deal and said, "We are honoured to have advised on this landmark transaction, which is a positive development for Hong Kong's markets. We hope this offering will open the door for similar bond issuances by other Chinese banks and financial institutions."

David was supported by partners Connie Heng and Mark Chan, senior associate Nathan Wong, associates Andre Seah and Nicoll Gnoh, and trainee Declan Ng.