ICBC HK branch prints green bonds in three currencies

Credit: REUTERS/FLORENCE LO

Industrial and Commercial Bank of China, Hong Kong branch, has priced US$3.15bn-equivalent of green bonds in three currencies to finance or refinance assets in the Guangdong-Hong Kong-Macau Greater Bay Area.

By investor type, banks booked 79%, fund managers 11%, insurers 7%, and private banks and others 3%.

Orders were over US$1bn from 37 accounts for the three-year fixed-rate tranche, including US$480m from the leads. Banks booked 46%, public sector investors 35%, fund managers 16%, and private banks and others 3%.

Both three-year tranches had the same geographical distribution: Asia took 94% of the Reg S bonds and Europe 6%.

Books were over US$1.6bn from 42 accounts for the five-year, including US$1bn of demand from the leads.

Asia booked 98% of the bonds and Europe 2%. By investor type, banks booked 79%, fund managers 8%, public sector investors and insurers 9%, and private banks and others 4%.

A HK$4bn (US$510m) two-year tranche priced at par to yield 2.2%, inside initial guidance of 2.45% area. Books were over HK$5.3bn from 25 accounts.

Asia took 99% of the bonds and others 1%. By investor type, banks booked 59%, fund managers and insurers 27%, sovereign wealth funds, central banks and others 14%.

A Rmb1bn (US$140m) one-year Dim Sum tranche priced at par to yield 3.10%, the tight end of final guidance of 3.10%-3.15%. Initial guidance was 3.4% area.

Orders were over Rmb2.2bn from 29 accounts, including Rmb1.05bn from the leads. EMEA took 65% of the bonds and Asia 35%.

By investor type, banks and central banks booked 90%, asset managers and fund managers 7%, and private banks 3%.

The notes are all expected to be rated A1 by Moody's.

ICBC, Agricultural Bank of China, Hong Kong branch, Bank of America Merrill Lynch, Bank of China, Bank of Communications, BNP Paribas, CBA, Credit Agricole, Industrial Bank, Hong Kong branch, HSBC, SMBC Nikko, Standard Chartered and UBS were joint global coordinators and bookrunners for the US dollar component.

ICBC, BOC, CBA, HSBC and StanChart were joint global coordinators and bookrunners for the Hong Kong dollar tranche.

ICBC, BOC, Credit Agricole and StanChart were joint global coordinators and bookrunners for the Dim Sum tranche.

Credit Agricole was green structuring adviser.

(Reporting by Daniel Stanton; Editing by Steve Garton)

((daniel.stanton@thomsonreuters.com; +65 64174548; Reuters Messaging: daniel.stanton.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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