Linklaters and Allens advise Bank of China Sydney on landmark Renminbi deal

By James Darcy
Banking Financial Services Royal Commission Global

Alliance partners Linklaters and Allens have acted for Bank of China Limited, Sydney Branch on its CNY 2 billion note offering which was completed on 16 April 2014. This transaction marks the first ever Renminbi offering targeting Australian institutional investors.

The listing of the notes on the Official List of ASX Limited (the Australian Securities Exchange) is the first ever listing of Renminbi-denominated bonds issued by a Chinese bank or corporate. In addition, the deal also marks the first time that Renminbi-denominated securities have been issued through an Australian branch of an offshore financial institution. This marks a further step in the internationalisation of the Renminbi. The Linklaters and Allens team was led by Linklaters Partner Michael Ng and Allens Partner James Darcy.

Michael Ng commented: 'Linklaters is honoured to be advising Bank of China Limited on another successful offering, following the recent Formosa Bond offering by Bank of China Limited, Hong Kong Branch and Renminbi bond offerings by the London and Singapore branches of Bank of China Limited. In this instance, we were able to combine our unrivalled experience in offshore RMB bond financing with the expertise of our on-the-ground alliance partner Allens.'

James Darcy said: 'This deal follows a string of recent developments in the internationalisation of Renminbi. Importantly, we have recently seen agreement reached between the ASX and Bank of China with respect to the provision of Renminbi settlement services to the Australian and Chinese financial markets. Several benefits from this agreement are expected to flow, one of which facilitating the issuance of Renminbi-denominated bonds by Chinese enterprises into Australian capital markets. It was a privilege to work with Bank of China and our alliance partner Linklaters on this offering.'

A team comprising partners and lawyers from integrated global alliance partners Linklaters and Allens advised the Bank of China Limited, Sydney Branch on the matter. Linklaters Hong Kong-based Partner Michael Ng and Associate Sam Yip worked with Allens Partner James Darcy, Senior Associates Paul Cerche and Thomas McAuliffe, and Lawyer Alexis Fong.


Notes for editors.

Allens is a commercial law firm working throughout Australia and Asia. Through its integrated alliance with Linklaters it provides clients access to 40 offices in 28 countries around the world.