BOC HONG KONG HOLDINGS LTD 29 September 2015
Bank of China (Hong Kong) ('BOCHK') today announces the successful issuance of RMB financial bonds (Panda bonds), the first by an international commercial bank in the mainland domestic interbank bond market. The RMB 1 billion bonds received overwhelming response and recorded over-subscription, with total subscriptions of over RMB 1.8 billion or about 1.8 times the issue amount.
The bonds carry a coupon rate of 3.5% per annum with a maturity of three years. The bonds will be in the custody of Shanghai Clearing House and traded in the mainland interbank bond market the next working day (i.e. 8 October) following the record date.
Mr Yue Yi, Vice Chairman and Chief Executive of BOCHK, said, 'We are very pleased to be the first international commercial bank to issue Panda bonds in the mainland domestic interbank bond market. This landmark transaction not only opens up a new funding source for us, but also sets a precedent for other foreign institutions which plan to tap the mainland capital market. The capital market in China is now the third largest capital market in the world and sees enormous potential. The further liberalisation of China's capital market marks a historic milestone as it is a key initiative in promoting RMB internationalisation. Bank of China Group has been playing a pivotal role in strengthening the financial integration between the Mainland and Hong Kong. BOCHK will continue to facilitate the expansion of the bond markets in both places, and enrich its innovative product suite, in an endeavour to contribute to the development of RMB internationalisation.'
BOCHK received the approval from the People's Bank of China on 22 September to issue financial bonds of not more than RMB 10 billion in the mainland interbank bond market. The issuance limit is so far the largest granted to international commercial banks in the mainland domestic market. The proceeds raised from the bonds will be used for offshore general working capital purpose, such as supporting those mainland enterprises going global and projects related to 'One Belt, One Road' initiative. It also provides a long-term and stable stream of funding for our sustainable development.
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Bank of China (Hong Kong) Limited ('BOCHK') is a leading listed commercial banking group in Hong Kong. With 260 local branches and efficient e-channels including over 1,000 self-service machines, internet and mobile banking services, BOCHK and its subsidiaries offer a comprehensive range of financial products and services to personal and corporate customers. BOCHK is one of the three note issuing banks and the Clearing Bank for Renminbi business in Hong Kong. In addition, the BOCHK Group (comprising BOCHK, Nanyang Commercial Bank and Chiyu Banking Corporation) and its subsidiaries have 42 branches and sub-branches in the Mainland of China to provide cross-border banking services to customers in both places.
BOC Hong Kong (Holdings) Limited, BOCHK's holding company, is listed on the main board of the Stock Exchange of Hong Kong, with stock code '2388', ADR OTC Symbol 'BHKLY'.
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