New Issue: China’s Huishang Bank sells $888 million 5½% offshore preference shares

By Marisa Wong

Morgantown, W.Va., Nov. 4 – Huishang Bank Corp. Ltd. priced $888 million of 5½% non-cumulative perpetual offshore preference shares at par on Thursday, according to a company announcement.

BOCI Asia Ltd., CCB International Capital Ltd., Deutsche Bank AG, Singapore Branch, Haitong International Securities Co. Ltd., Hongkong and Shanghai Banking Corp. Ltd. and UBS AG Hong Kong Branch are the joint global coordinators and also joint bookrunners and joint lead managers with ABCI Capital Ltd., CEB International Capital Corp. Ltd., China Merchants Securities (HK) Co., Ltd., CLSA Ltd., CMB International Capital Ltd., Credit Suisse (Hong Kong) Ltd., Essence International Securities (Hong Kong) Ltd., Guoyuan Capital (Hong Kong) Ltd. and Shanghai Pudong Development Bank Co., Ltd., Hong Kong Branch.

The dividend rate will be reset five years after the issue date and every five years after that. The reset rate will be the benchmark rate plus a fixed margin of 423.1 basis points.

The preference shares are non-putable, but they are callable in whole or in part on the first reset date and on any dividend payment date after that.

The bank expects to use proceeds from the Regulation S offering to replenish its additional tier 1 capital, increase its tier 1 capital adequacy ratio and optimize its capital structure.

The Hefei, China-based bank announced earlier this week that it obtained regulatory approval to issue up to RMB 6 billion of offshore preference shares.

Issuer:	Huishang Bank Corp. Ltd.
Issue:	Non-cumulative perpetual offshore preference shares
Amount:	$888 million
Maturity:	Perpetual
Dividend:	5½%; reset Nov. 10, 2021 and every five years after that; reset rate will be benchmark rate plus 423.1 bps
Price:	Par of $20
Bookrunners:	BOCI Asia Ltd., CCB International Capital Ltd., Deutsche Bank AG, Singapore Branch, Haitong International Securities Co. Ltd., Hongkong and Shanghai Banking Corp. Ltd. and UBS AG Hong Kong Branch (global coordinators); ABCI Capital Ltd., CEB International Capital Corp. Ltd., China Merchants Securities (HK) Co., Ltd., CLSA Ltd., CMB International Capital Ltd., Credit Suisse (Hong Kong) Ltd., Essence International Securities (Hong Kong) Ltd., Guoyuan Capital (Hong Kong) Ltd. and Shanghai Pudong Development Bank Co., Ltd., Hong Kong Branch
Put option:	None
Call option:	In whole or in part on first reset date and on any dividend payment date after that
Pricing date:	Nov. 3
Settlement date:	Nov. 10
Distribution:	Regulation S

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