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Bank of Communications rights issuance
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US$4.9bn | |
|---|---|---|
| Synopsis Bank of Communications launches rights issuance in Hong Kong | ||
| Firm | Client | Role |
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King & Wood
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Issuer
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PRC counsel
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Baker & McKenzie
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Issuer
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Hong Kong counsel
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Grandall Legal Group [Lead partner: Liu Wei]
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Underwriters
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PRC counsel
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Freshfields [Lead partner: Chris Wong]
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Joint bookrunners
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Hong Kong counsel
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After the massive lending fad last year, banks are now seeking to raise funds to replenish their capitals. The fund-raising has been music to the ears of many debt market lawyers, especially those in King & Wood, Baker & McKenzie, Grandall and Freshfields. All four firms have recently advised on Bank of Communications’ whopping US$4.9bn rights issuance.
The bank, will sell 3.89 billion yuan-denominated A shares in Shanghai at and 3.46 billion Hong Kong dollar-denominated shares in Hong Kong. HSBC Bank, which owns a 19% stake (advised by Freshfields) in the issuer, has confirmed that it will subscribe through its unit, the Hongkong and Shanghai Banking Corporation, for its full entitlement of H-shares in the planned rights issue of new A-shares and H-shares worth US$921m.
Grandall Shanghai’s Liu Wei led its team to provide legal advice to a total of 13 underwriters including UBS, Haitong Securities, CICC, Credit Suisse Founder, Huatai Securities, China Securities, Goldman Sachs, Citics and HSBC.
Having advised on China Minsheng Bank’s blockbuster US$3.2bn Hong Kong IPO, King & Wood, Grandall and Freshfields all walked away with an award for Equity Market Deal of the Year at the 2010 ALB China Law awards in Shanghai earlier this year.
*Shanghai-headquartered Bank of Communications is the fifth largest bank in China and has total assets of RMB 3,309 billion as at December 31, 2009. ALB
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