AMTD completes US$500mm 3yr bond offering for CMBC HK Branch

On April 27, 2017, China Minsheng Banking Corporation Ltd., (1988.HK, “China Minsheng Bank” or the “Bank”) successfully returned to the international capital markets by pricing its Reg S US$500mm 3-year senior bond (the “Transaction”) offering through its Hong Kong Branch, with AMTD acting as the Joint Bookrunner and Joint Lead Manager. In addition to serving various Chinese financial institutions to complete their IPOs in Hong Kong, the transaction marks the first time for AMTD to assist a Chinese bank for its offshore bond offering, further strengthening AMTD’s ability to provide comprehensive services for different types of financial institutions through various overseas fundraising channels. AMTD is also the only non-bank financial institution in the syndicate group of China Minsheng Bank Hong Kong Branch’s offshore USD bond offering.

Established on 12 January 1996 in Beijing, China Minsheng Bank is the first national joint stock commercial bank in the PRC primarily founded by non-state-owned enterprises. Over the past 20 years since establishment, accompanied by the rapid growth of China’s economy and supported by customers and various circles of society, China Minsheng bank has been taking full advantages of “new bank, new mechanism”, and has grown from a small bank with RMB1.38bn of initially registered capital into a large-scale commercial bank with RMB320bn of core capital, more than RMB5.2tn of total assets, nearly 3,000 branches and outlets, and almost 60,000 employees. China Minsheng Bank was ranked No. 33 in the Top 1000 World Banks ranking released by The Banker magazine in July 2016. In the Global 500 list published by Fortune magazine in July 2016, China Minsheng Bank stood at No. 221.

China Minsheng Bank strives to achieve its grand vision of becoming a time-honored enterprise, adhere to the core values of “integrity, win-win cooperation, taking people as the core, and pursuit of excellence”, insist on the development idea of “treating customers as the center, taking markets as the guide, taking innovations as the driving force” and the development direction of “being group-oriented, digitalized, specialized and internationalized”, press ahead with reforms and innovations, speed up strategic transformation, and spare no efforts to become a role model in China’s banking sector to create more value to customers and to bring higher return to investors.

Issuer of the Transaction is China Minsheng Banking Corp., Ltd., Hong Kong Branch, and the bonds will be listed on the Hong Kong Stock Exchange. China Minsheng Bank and the issue are both rated BBB (S&P). In 2012, the Bank successfully opened its first overseas branch in Hong Kong, marking a significant milestone in the course of its operation for international development and advancement into the international financial market. After 5 years’ development, China Minsheng Bank Hong Kong Branch has become one of the top-tier Chinese financial institutions in the city, and its achievements are widely recognized and highly appreciated both locally and abroad.

Benefited from China Minsheng Bank’s strong financial and asset quality, synergies among its three major business segments, under the overall leadership of China Minsheng Bank HK branch, coupled with the efforts of the syndicate group including AMTD, the Transaction was extremely successful and well received by the international capital markets. The final pricing was tightened to T3+115bps from the initial pricing guidance of T3+135bps.

AMTD served as the Joint Bookrunner and Joint Lead Manager of the transaction as well as represented the only non-bank financial institution in the syndicate group. Other syndicate banks in the Transaction included CMBC Hong Kong Branch, CCB International, HSBC, Bank of China, BOCOM HK Branch, China Construction Bank (Asia), Shanghai Pudong Development Bank Co., Ltd., Hong Kong Branch, Industrial Bank Co., Ltd. Hong Kong Branch, UBS, Barclays, Citi and ANZ.

Including China Minsheng Bank, AMTD has successfully assisted a number of onshore and offshore financial institutions tapping the international capital markets over the past 12 months, these include the USD bond issuances of China Huarong Asset Management (2799.HK), Sirius International Insurance Group, Zhongrong International Trust, Fenghui Leasing and Sun Hung Kai & Co. (86.HK); as well as the H-share IPO of Everbright Securities (6178.HK), Bank of Tianjin (1578.HK) and Bank of Qingdao (3866.HK) etc. The Transaction also represents the 35th offshore bond offering completed by AMTD in the past 12 months and the 15th deal this year, demonstrating AMTD’s leadership and influences in the international debt capital markets.

About China Minsheng Bank

China Minsheng Bank was established since 12 January 1996. It is China’s first national joint-stock commercial bank initiated and funded mainly by non-state-owned enterprises. Over the past 20 years since establishment, accompanied by the rapid growth of China’s economy and supported by customers and various circles of society, China Minsheng bank has been taking full advantages of “new bank, new mechanism”, and has grown from a small bank with RMB1.38bn of initially registered capital into a large-scale commercial bank with RMB320bn of core capital, more than RMB5.2tn of total assets, nearly 3,000 branches and outlets, and almost 60,000 employees. China Minsheng Bank was ranked at No. 33 in the Top 1000 World Banks ranking released by The Banker magazine in July 2016. In the Global 500 list published by Fortune magazine in July 2016, China Minsheng Bank stood at No. 221.