Clifford Chance

Clifford Chance advises on Bank of China's five tranche, multi-currency US$3.03 billion green bonds

Leading international law firm Clifford Chance advised the joint lead managers on Bank of China's issuance of US$3.03 billion green bonds, the largest green bond issued by a Chinese entity in the international market and the first time that two offshore branches of a PRC-based financial institution have issued green bonds. The green bonds consist of one CNY, three USD and one EUR tranches. All of the net proceeds of the green bonds will be used to fund eligible green projects.

The transaction involved the following two key parts:

·         Advising the joint lead managers, Bank of China Limited, Bank of China (Hong Kong) Limited, BOCI Asia Limited, Citigroup Global Markets Limited and Wells Fargo Securities International Limited, on the CNY1.5 billion 3.60 percent notes due 2018 listed in Hong Kong and issued by Bank of China Limited, New York branch on 12 July 2016 under Bank of China's Limited's US$20 billion medium term note programme.

·         Advising the joint lead managers, Bank of China Limited, Bank of China (Hong Kong) Limited, BOCI Asia Limited, Crédit Agricole Corporate and Investment Bank, The Hongkong and Shanghai Banking Corporation Limited, Merrill Lynch International, BNP Paribas, China Construction Bank (Asia) Corporation Limited, Commerzbank Aktiengesellschaft, ING Bank N.V., Singapore Branch and Skandinaviska Enskilda Banken AB (publ), on the US$500 million 1.875 percent notes due 2019, US$1 billion 2.25 percent notes due 2021, US$750 million floating rate notes due 2019 and EUR500 million 0.75 percent notes due 2021, all listed in Luxembourg and issued by Bank of China Limited, Luxembourg branch on 12 July 2016, under Bank of China's US$20 billion medium term note programme.

Head of Capital Markets for Asia Pacific Connie Heng led on the deal and was supported by senior associate Mark Chan‎, and associates Torrance Shi and Nathan Wong. Hong Kong partner Alex Lloyd and associate Song Yue advised on the US aspects.

Connie said, "This green bond issuance is groundbreaking given its size, and showcases the depth of expertise and multi-jurisdictional capability of our Capital Markets team, including the US aspects which were primarily handled by our US team in Asia. Over the last year, our team in Asia led on four significant green bond transactions and we expect the number and range of issuers entering the green bond market to continue to expand."

Clifford Chance advised on two key green bonds issuances in 2015, Agriculture Bank of China's US$1 billion debut green bonds listed in London and on Xinjiang Goldwin's US$300 million green bonds, the first ever by a PRC incorporated company.