Linklaters has advised the Bank of China on its first offshore Renminbi (RMB) ‘Schengen bond’. This bond, which will be listed on the Euro MTF market of the Luxembourg Stock Exchange, means that the Bank of China to be the first Chinese mainland company to issue RMB bonds in the Eurozone.

This three-year bond, priced at 3.50%, amounts to a total of RMB 1.5 billion and is issued under the USD 10 billion MTN program of the Bank of China Group.

This first offshore RMB bond was named “Schengen bond” using the name of a small village at the borders of Luxembourg, France and Germany which stands for free movement within Schengen member countries.

The Linklaters team in Luxembourg, London and Hong Kong was led by Capital Markets partner Nicki Kayser and included Investment Management Group - partner Freddy Brausch and Capital Markets - partners Andrew Carmichel and Michael Ng; managing associate Delphine Horn and associate Sam Yip.