Herbert Smith Freehills is pleased to announce that the Greater China debt capital markets team has advised on three separate bond issuances in Hong Kong over the past four weeks. The deals have raised a total of US$4.1 billion.
The firm acted for two major Chinese banks on dim sum bond issuances—RMB2.5 billion (US$413 million) of yuan-denominated bonds by Industrial & Commercial Bank of China and RMB1 billion (US$165 million) of yuan-denominated bonds by China Merchants Bank Co. Ltd.
The issuance by ICBC, China's largest lender by assets, was offered in two tranches—RMB2billion yuan with a two-year maturity and a 3.20% coupon, and the remaining RMB500 million yuan with a five-year maturity and a 3.90% coupon. ICBC (Asia), ICBC International, ICBC Singapore, HSBC, Citigroup and Credit Suisse were bookrunners on the transaction.
China Merchants Bank's bond issuance had a 3-year maturity and a 4.10% coupon. Wing Lung Bank, Citigroup, HSBC, Standard Chartered Bank (Hong Kong), CMB International Capital, CICC HK Securities, Jefferies and UBS acted as bookrunners on the transaction.
Both issuers were advised by Asia U.S. Securities Practice Head Kevin Roy and Beijing Managing Partner Tom Chau, who were assisted by counsel Zhong Wang and associate Isaac Chen.
ICBC and China Merchants Bank are long term clients of Herbert Smith Freehills. The firm acted for ICBC on its RMB2 billion (US$328.5 million) yuan-denominated dim sum bond issuance in London last year and also its RMB 1 billion (US$157 million) three-year fixed-rate bonds due 2015, in 2012. The firm also advised China Merchants Bank on its US$1 billion H-rights shares issuance last year and its US$3.2 billion global rights issuance in 2010.
Separately in the month, Herbert Smith Freehills also acted for the world's largest public utilities company, State Grid Corporation of China, on its US$3.5 billion Rule 144A/Regulation S senior guaranteed notes issuance on the Hong Kong Stock Exchange.
Kevin commented:
"Our DCM team here has been exceptionally busy over the past year or so as debt markets have been particularly active in this region. RMB291 billion of dim sum bonds were issued in Hong Kong in 2013 and RMB125 billion were sold in Q1 2014 alone. The trend looks set to continue, and we certainly look forward to assisting our clients on future deals."
