RETAIL FUNDS | Cesar Tordesillas, Hong Kong

BEA China first foreign bank to issue RMB bond in HK

BEA China launched the RMB Retail Bonds in Hong Kong, becoming the first foreign banking subsidiary on the mainland to do so.

Bank of East Asia China Limited is a wholly-owned subsidiary of The Bank of East Asia, Limited or BEA Hong Kong.

The Bonds will be available for public subscription between 30 June 2009 and 17 July 2009. BEA China targets to offer the Bonds of an aggregate principal amount of not less than RMB1 billion to both institutional and retail investors. The Bonds will bear an annual interest rate of 2.80 percent and be due on 23 July 2011. Interest is payable at the end of every six months on 23 January and 23 July in each year, starting on 23 January 2010, until the maturity date. The denomination of the Bonds is RMB10,000 or US$1463.55.

The joint lead managers and bookrunners for the issuance of the Bonds are Bank of China (Hong Kong) Limited and BEAHK, while the Lead Arrangers are China International Capital Corporation Hong Kong Securities Limited, The Hongkong and Shanghai Banking Corporation Limited, and Standard Chartered Bank (Hong Kong) Limited.

The Bonds will be distributed in Hong Kong through the outlets of 18 Placing Banks, including BOCHK, Bank of Communications Co. Ltd., Hong Kong Branch, BEAHK, China Construction Bank (Asia) Corporation Limited, Chiyu Banking Corporation Limited, Chong Hing Bank Limited, CITIC Ka Wah Bank Limited, Dah Sing Bank Limited, DBS Bank (Hong Kong) Limited, Fubon Bank (Hong Kong) Limited, The Hongkong and Shanghai Banking Corporation Limited, Industrial and Commercial Bank of China (Asia) Limited, Nanyang Commercial Bank Limited, Public Bank (Hong Kong) Limited, Shanghai Commercial Bank Limited, Standard Chartered Bank (Hong Kong) Limited, Wing Hang Bank Limited, and Wing Lung Bank Limited.

"Throughout the application process, our Bank received strong support from a number of authorities including the State Council of the People's Republic of China, the National Development and Reform Commission, The People’s Bank of China, China Banking Regulatory Commission, the Securities and Futures Commission in Hong Kong and the Hong Kong Monetary Authority. We are truly grateful for their assistance, as well as for the Central People's Government's approval, which reflects its full support of the Hong Kong Special Administrative Region and locally-incorporated foreign banks in China," said BEA Hong Kong Chairman & Chief Executive, and Chairman of BEA China, Dr. David K.P. Li.

"Last year, BEA China was the first foreign bank to launch RMB debit and credit cards in China; it is now the first mainland-incorporated foreign bank to issue RMB retail bonds in Hong Kong. With the success of this bond issue, we look forward to the continuing rapid growth of BEA China, supporting the ever-expanding development and prosperity of our Country and Hong Kong," Dr. Li added.

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