Clifford Chance Advises on China Development Bank’s Upsized RMB4.5 Billion Notes Issuance

Leading international law firm Clifford Chance has advised the joint lead managers and bookrunners, Hong Kong and Shanghai Banking Corporation, Standard Chartered Bank, Barclays, Bank of China (Hong Kong), ABC International, Bank of Communications, Hong Kong Branch, CCB International Capital, ICBC (Asia) and ICBC International Securities, on China Development Bank’s (CDB) RMB4.5 billion notes issuance.

The original offering of RMB3 billion was increased to RMB4.5 billion due to strong investor demand, yet continued to be 1.22 times oversubscribed.

The deal included the issuance of three tranches of Reg S senior unsecured notes: an RMB1.9 billion 2-year floating rate note, an RMB1.7 billion 5-year 3.6% note and an RMB900 million 15-year 4.5% note.

This is the first issuance from CDB’s recently established offshore RMB7 billion debt programme and is also the first Chinese financial institution to launch a dim sum bond this year.

Capital Markets partner Connie Heng said, “CDB’s notes issuance has been incredibly well received by the market and may pave the way for a resurgence in dim sum bond activity.”

Heng adds, “The recent granting of RQFII programmes in London and Singapore, as well as other measures in the continued liberalisation of the RMB, has certainly boosted investors’ confidence in the RMB’s viability as a currency for trade and investment.”

Connie was supported on this transaction by consultant Angela Chan and associate Lin Li.

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