Herbert Smith Freehills Advises China Merchants Bank HK Branch On US $5 Billion MTN Program And First Drawdown

Herbert Smith Freehills has advised China Merchants Bank Co. Ltd. Hong Kong Branch on the establishment of its US$5 billion Medium Term Note (MTN) program and the first drawdown of US$500 million.

The MTN program was established on 28 May 2014 and the Hong Kong Stock Exchange listing of the notes became effective on 13 June 2014. China Merchants Bank offered US$500 million principal amount of notes, with a 2.375% coupon, which will mature in 2017.The proceeds will be used for working capital and general corporate purposes. 

BofA Merrill Lynch, HSBC and Standard Chartered Bank were the arrangers for the MTN programme, and also the underwriters of the first drawdown together with BNP Paribas, Citigroup, JP Morgan and Wing Lung Bank Limited.

The Herbert Smith Freehills team on the transaction was led by Hong Kong partner Kevin Roy and Beijing Office Head and Relationship Partner, who were supported by counsel Wang Zhong and associate Isaac Chen.

Herbert Smith Freehills has advised China Merchants Bank on a number of its equity and debt offerings. The firm most recently acted for the bank on its US$165 million bond issuance, which had a 3-year maturity and a 4.10% coupon. Last year, the firm also represented the bank on its 680,423,172 H-share rights issuance which raised approximately US$1 billion in Hong Kong and followed its US$4.5 billion Shanghai Stock Exchange listing of A-share rights.


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