Linklaters acted as international legal advisor to Industrial and Commercial Bank of China on its issuance offering of US$2.9bn US offshore Additional Tier 1 preference shares.
This landmark transaction marks the lowest-ever coupon for an Additional Tier 1 capital instrument issued by a Chinese bank, and represents the first offshore Additional Tier 1 issuance adopting the new rules set out by China Banking and Insurance Regulatory Commission in its latest Guiding Opinions on Capital Instrument Innovation for Commercial Banks (as revised in December 2019). Unlike past offshore preference shares issued by Chinese banks, the ICBC offshore preference shares only contain a single non-viability trigger event and permits partial or full or partial conversion.
The transaction was led by Linklaters’ capital markets partners William Liu (Picture) and Terence Lau and corporate partner Kevin Cheung, with support from managing associate Min Fang.
Law Firms: Linklaters;
Clients: Industrial and Commercial Bank of China;