Recently, China Construction Bank Corporation successfully issued a total of US$1.85 billion of write-down tier two capital bonds. Engaged by China Construction Bank Corporation (hereinafter "CCB") as its legal advisor in China, JT&N has provided full legal services for the successful issuance of foreign US$ tier two capital bonds by CCB.
On February 20, 2019, CCB successfully issued US$1.85 billion of write-down tier two capital bonds overseas. It has been four years since a large Chinese state-owned commercial bank issued a capital instrument in an overseas market in the name of head office. The valid period of these bonds is 10 years (the issuer shall have the option to redeem the bonds at the end of the 5th year). The nominal interest rate is 4.25%, with an interest margin of 188BPS compared with the rate of return on US treasury bonds in the same period, the lowest level in history among other interest margins of overseas capital instruments issued by Chinese-funded commercial banks, which further improves the ability of CCB to serve the real economy and to prevent and defuse risks. Thanks to the investors' full recognition of the development achievements of CCB, the bonds issued this time have been actively subscribed by various types of investors in all regions of the world, with the subscription scale exceeding US$6.5 billion.
As the issuer's legal advisor in China, JT&N has provided full legal services for CCB's successful issuance of the write-down tier two capital bonds due in 2029. The project was headed by Senior Partner Jun GUAN, and the project team members include partners Xin LU, Lifeng ZHAO and Jiangxia LU, lawyer Dingwei XIANG and assistant lawyers Jing WANG and Jinxi WU.
Established in October 1954, CCB is a domestic leading and internationally renowned large joint-stock commercial bank engaging in credit, lease, asset management, inclusive finance, micro-finance and other relevant businesses. By the end of 2017, CCB had a market capitalization of about US$232.898 billion, ranking fifth among the world's listed banks, and second among the top 1,000 global banks by The Banker magazine of Britain in terms of tier one capital in 2018.
JT&N has been engaged in the relevant legal services since the formation of China’s securities market. It occupies a leading position in such legal practices as the IPOs at home and abroad, refinancing of listed companies, M&A and reorganization of listed companies and issuance of bonds at home and abroad. Since its establishment, JT&N has accumulated abundant professional knowledge and practical experience, had a sound understanding of the laws, regulations and regulatory rules on companies and securities, been familiar with the operation and process of corporate and securities businesses, and established a sound and stable communication and cooperation relationship with the relevant authorities and intermediaries, thus securing the best legal services for its clients.