Clifford Chance

Clifford Chance advises on China Construction Bank's issuance of preference shares

Leading international law firm Clifford Chance has advised China Construction Bank Corporation on its US$3.05 billion, 4.65% non-cumulative perpetual offshore preference shares. Partner Angela Chan led on the deal, supported by partners Connie Heng and Fang Liu and associates Song Yue, Torrance Shi and Vivian Li.

Ms Chan said, "Despite the volatility of the summer, we've seen an increase in issuances towards the end of 2015. China Construction Bank has achieved the lowest ever Additional Tier 1 coupon for a Chinese bank and this sets a good benchmark for other bank capital issuance in 2016."

China Construction Bank will use the proceeds to replenish its Tier 1 capital ratio, in compliance with the China Banking Regulatory Commission's requirements that systemically-important lenders must increase the Basel III capital adequacy ratio to 9.5% by 2018.