Bank of China New York Branch CNH Dual-tranche Notes Issuance

On June 13, 2024, Bank of China Limited, New York Branch (“BOC New York Branch”), successfully priced CNH 1 billion 2-year and CNH 2 billion 3-year dual-tranche fixed-rate Reg S senior unsecured notes as part of Bank of China Limited’s USD 40 billion MTN Program. This landmark transaction marks BOC New York Branch’s return to the CNH market since 2016 and it’s first-ever dual-tranche CNH notes issuance. The reoffer yield was set at 2.83% for the 2-year tranche and 2.85% for the 3-year tranche, the tightest levels achieved for any 2-year or 3-year CNH public bond issuance by a Chinese commercial bank in 2024. These yields represent a tightening of 47 basis points and 50 basis points from the initial price guidance, respectively. 
 

The offering garnered strong participation from high-quality institutional investors from Europe, the Middle East, and Asia, with the combined order book peaking at CNH 12.4 billion. The final order book for the 2-year tranche was over CNH 3.5 billion, representing an oversubscription rate of 3.5 times, with 25% allocated to quasi-sovereign financial institutions and other financial institutions. The final order book for the 3-year tranche was over CNH 5.6 billion, representing an oversubscription rate of 2.8 times, with 5% allocated to quasi-sovereign financial institutions and other financial institutions.

The Joint Global Coordinators were Bank of China Limited, London Branch, Bank of China (Hong Kong) Limited, BOCI Asia Limited, Agricultural Bank of China Limited Hong Kong Branch, BofA Securities, Bank of Communications, BNP PARIBAS, BOSC International, China CITIC Bank, China Securities International, CNCB Capital, Citigroup, CMB Wing Lung Bank Limited, HSBC, ICBC (Asia), Industrial Bank Co., Ltd. Hong Kong Branch, J.P. Morgan, Mizuho, and Standard Chartered Bank.

As the most globalized Chinese bank, Bank of China has long been committed to promoting the internationalization of the RMB by leveraging its global service network. In the future, Bank of China will continue to utilize its expertise in foreign exchange and trade, strengthen its presence in the offshore RMB market, and contribute more to the steady and prudent promotion of RMB internationalization.