2 June, 2016
Allen & Overy has advised Chong Hing Bank on its issue of RMB1.5 billion panda bonds, the first panda bond issuance by a Hong Kong financial institution this year. The notes were underwritten by HSBC China, BOC, ICBC, ABC and Guangzhou Securities and proceeds will be used in aid of Chong Hing Bank’s expansion in the PRC (People’s Republic of China).
The A&O team was co-led by International Capital Markets partner John Lee together with of counsel Agnes Tsang in Hong Kong.
Commenting on the transaction, John Lee said: “The panda bond market for foreign issuers continues to develop and issuers have been both cautious and curious about utilising panda bonds as a source of funding for their business. While there remain some concerns around the process of approval, the fact remains that the Chinese regulators are still feeling their way as they open up interbank bond market to foreign issuers. Chong Hing Bank’s issue is one of many issues in the pipeline and we are pleased to have advised on their debut panda bond issue.”
Last October, A&O advised on the first batch of pilot panda bond issuances for Bank of China Hong Kong and HSBC which paved the way for further issuances under the Chinese government’s new draft regulations allowing more foreign financial institutions and corporates to access China’s domestic bond market.
