Linklaters advises Bank of China on the first Yulan bonds
Linklaters acted as international legal advisor to Bank of China Limited (BOC) on the issuance of US$500m 0.75% bonds due 2024 by Bank of China Hong Kong Branch. This offering marks the first Yulan bond issuance in the market.
The Yulan bond is a product issued pursuant to an initiative established between the Shanghai Clearing House (SHCH) and Euroclear Bank (Euroclear). Yulan Bonds are issued in dematerialised form through the SHCH and international investors settle the bonds through the Euroclear network. Underlying investors are required to provide their Legal Entity Identifier code when investing in Yulan bonds.
The transaction was led by capital markets partner Michael Ng, with support from managing associate Allen Zhang.
Linklaters is a long-term partner of BOC on its capital market transactions. The firm previously advised BOC on:
- its first transition bonds aligned to the ICMA Climate Transition Finance Handbook, through the Hong Kong branch, in January 2021
- Asia’s first blue bonds, through the Macau SAR branch and Paris branch, in September 2020
- the first offshore SMEs themed Covid-19 impact alleviation social bonds, through the Macau branch, in February 2020
- its first public SOFR-linked bonds in Asia in October 2019
- all of BOC’s offshore bond offerings under its US$40bn medium term note programme.
Linklaters is committed to supporting clients on some of the most innovative and highest profile transactions, including a host of firsts, in the capital markets space.
