Finance pros handle Sydney chunk of Bank of China’s latest international bond issue

Finance experts from King & Wood Mallesons (KWM) handled the Sydney portion of Bank of China’s (BOC) latest multi-currency, multi-tranche bond issue.

Partner Philip Harvey, assisted by special counsel Angela Chung, advised the Sydney branch of the Chinese banking giant on the issue of $600m in bonds. The bonds are part of the April 2019 round of “Silk Road” bonds issued by BOC, which in turn is a component of the US$40bn medium-term note program of the company.

KWM said that the April bonds were denominated in Australian dollars, US dollars, euros, renminbi, and Hong Kong dollars. They were issued by the bank’s branches in Sydney, Luxembourg, Frankfurt, Macau, and Hong Kong.

The round was BOC’s fifth to be issued in international capital markets specifically to support the “Belt and Road Initiative” (BRI) of the Chinese government. KWM said that the bonds issued by the Sydney branch have a 3.5-year Australian dollar floating rate and ratings of “A1/A/A, on par with BOC.”

“KWM is currently involved in a range of Belt and Road projects and advising BOC Sydney on this issuance is another way in which the firm can help progress this international initiative,” Harvey said. “BRI looks to bolster economic co-operation and pave the way for simplified trades between countries along the ancient Silk Road, and we are proud to be involved in progressing projects that serve to promote exchange and mutual learning in the region.”

In the past three years, KWM has acted in bond issuances of BOC’s Sydney branch totalling $2.7bn. KWM is also a frequent adviser to the Australian branches other major Chinese banks, including Industrial and Commercial Bank of China, China Construction Bank, Bank of Communications, and Agricultural Bank of China.