S&P rates Bank of China notes A

S&P said it assigned A long-term issue ratings to two proposed senior unsecured fixed-rate note drawdowns from Bank of China (Hong Kong) Ltd. The drawdowns are under the bank’s $40 billion medium-term note program.

The offerings consist of U.S. dollar and Chinese renminbi tranches and are redeemable at par on maturity.

“The rating on the notes reflects our long-term issuer credit rating on Bank of China Ltd. (A/stable/A-1). We view the creditworthiness of the Hong Kong branch as equal to that of the bank,” S&P said in a press release.

The bank plans to use the proceeds to fund eligible climate transition projects as set out in the Bank of China Limited Transition Bonds Management Statement.

“Under the terms of the notes, however, it would not be an event of default if the issuer failed to comply with such obligations or failed to use the proceeds in the manner specified in the pricing supplement,” S&P said.

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