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JunHe advised on ICBC’s overseas issuance of USD denominated Tier 2 capital bonds


Recently, the Industrial and Commercial Bank of China (ICBC) successfully issued Tier 2 capital bonds overseas on the terms of the bonds in conformity with the Basel III rules and the relevant rules implemented by the CBRC.  The proceeds from this bond issuance will be fully used to top up its Tier 2 capital.

The Tier 2 capital bonds issued by ICBC amounted to USD 2 billion, with a fixed tenor of 10 years.  Due to strong demand from global investors, this bond issuance was approximately twice over-subscribed by about 180 investors world wide, and was successfully priced at the lowest end of the pricing range.  The costs of this bond issue were lower than the Tier 2 capital bonds issued by equivalent institutions with the same tenor.

This is the second time ICBC has issued supplementary capital instruments in the overseas capital market since last year, when it issued preferred stocks overseas.

Following last years’ participation in ICBC’s overseas issuance of preferred stocks, JunHe represented the underwriter in this project, acting as its PRC counsel to conduct legal due diligence investigation, review transaction documents, issue legal opinions and offer advice with respect to the laws of the PRC.

Partner YU, Yongqiang (YY) led this project.

JunHe is the only Chinese law firm to be admitted as a member of Lex Mundi and Multilaw, two international networks of independent law firms. JunHe and selected top law firms in major European and Asian jurisdictions are “best friends.” Through these connections, we provide high quality legal services to clients doing business throughout the world.