BOC Hong Kong : BOCHK has entered into Agreements with BOC in relation to transfer of the Vietnam Business and the Philippines Business

6 November 2017

BOC Hong Kong (Holdings) Limited ("BOC Hong Kong (Holdings)") today announced that Bank of China (Hong Kong) ("BOCHK") has entered into Agreements with Bank of China ("BOC") in relation to the transfer of the Vietnam Business and the Philippines Business respectively, as part of the restructuring exercise of the BOC Group in the ASEAN region.

The consideration for the proposed transfer of the Vietnam Business is USD152 million (equivalent to approximately RMB997 million, calculated using the agreed exchange rate in respect of the Vietnam Agreement Note). The consideration for the proposed transfer of the Philippines Business is PHP4.4026 billion (equivalent to approximately RMB597.40 million, calculated using the agreed exchange rate in respect of the Philippines Agreement Note).

Completion of each of the proposed transfers is conditional upon the satisfaction (or, if applicable, waiver) of its respective conditions precedent including the obtaining the requisite approvals from domestic and overseas regulatory authorities. For details, please refer to the announcement.

Mr Yue Yi, Vice Chairman & Chief Executive of BOC Hong Kong (Holdings), said, "BOC HoChiMinh City Branch and BOC Manila Branch were established in 1995 and 2001 respectively, both branches offer a wide range of commercial banking products and services. The proposed transfers will help us provide better financial services to local customers and further expand our network in the ASEAN region. ASEAN markets are experiencing rapid growth with substantial development potential, particularly from the opportunities arising from initiatives such as the Belt and Road, RMB internationalisation and Mainland enterprises going global. We will continue to leverage BOCHK's sophisticated financial product platform, expertise and high-end services capabilities to make BOC HoChiMinh City Branch and BOC Manila Branch become a mainstream bank in local markets, and enhance BOC Group's overall business strength and market competitiveness in the ASEAN region."

With the proposed transfers of the Vietnam Business and the Philippines Business, together with the previous acquisitions of subsidiaries and/or businesses from BOC in Malaysia, Thailand, Indonesia and Cambodia, as well as the establishment of the Brunei Branch, BOCHK is transforming into an internationalised regional bank.

Note: The amounts will be paid in cash at completion in Hong Kong dollars, using the then applicable HKD-CNH exchange rate mutually agreed by the parties on an arm's length basis.

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BOC Hong Kong (Holdings) Limited ("the Company") holds the entire equity interest of Bank of China (Hong Kong) Limited ("BOCHK"), its principal operating subsidiary. Bank of China Limited (stock code "3988" and "4601" (Preference Shares)) holds approximately 66.06% of the equity interest in the Company through BOC Hong Kong (BVI) Limited, an indirect wholly-owned subsidiary of Bank of China Limited ("BOC"). The Company began trading on the main board of the Stock Exchange of Hong Kong on 25 July 2002 and is one of the largest listed companies and commercial banking groups in Hong Kong, with stock code "2388" and ADR OTC Symbol: "BHKLY".

BOCHK has strong market positions in all major businesses. We have the most extensive local branch network and diverse service platforms, including 196 branches, efficient e-channels of over 1,000 self- service machines, as well as Internet and Mobile Banking services. We offer a comprehensive range of financial, investment and wealth management services to personal, corporate and institutional customers. In accordance with the strategic plan of BOC Group, we have been driving our regional development through the acquisition of BOC's institutions in the ASEAN region and the establishment of a Brunei Branch. We are actively expanding our business in the ASEAN region and transforming BOCHK into an internationalised regional bank.

BOCHK is one of the three note-issuing banks and the sole clearing bank for Renminbi ("RMB") business in Hong Kong. With our strong RMB franchise, we are the first choice of customers in this business. Through the deep collaboration with our parent bank, BOC, we provide a full range of high quality cross-border services to multinationals, cross-border customers, Mainland enterprises going global, central banks and super-sovereign organisations.