New Issue: Bank of East Asia prices $500 million 4 7/8% subordinated notes due 2032 at 99.846

By William Gullotti

Buffalo, N.Y., April 25 – Bank of East Asia, Ltd. has priced $500 million of 4 7/8% subordinated notes due 2032 (Baa2/BBB-) at 99.846, according to a listing notice with an appended offering circular on Monday.

The series 150 notes, which qualify as tier 2 capital, are being issued under the bank’s $6 billion medium-term note program.

The initial interest rate will remain fixed until April 22, 2027, at which time the fixed rate will adjust to Treasuries plus 230 basis points.

The notes will be callable on the interest reset date, with regulatory approval, at par plus interest.

Bank of East Asia, Ltd. (Debt Capital Markets), Citigroup Global Markets Ltd., Goldman Sachs (Asia) LLC, HSBC Ltd. and Standard Chartered Bank are the joint global coordinators, joint lead managers and joint bookrunners for the Regulation S offering.

Also serving as joint lead managers and joint bookrunners are ABCI Capital Ltd., Bank of China (Hong Kong) Ltd., BOCI Asia Ltd., Bocom International Securities Ltd., CCB International Capital Ltd., CEB International Capital Corp., Ltd., China Citic Bank International Ltd., China Everbright Bank Co., Ltd., Hong Kong Branch, China Minsheng Banking Corp., Ltd., Hong Kong Branch, Credit Agricole CIB, Deutsche Bank AG, Hong Kong Branch, Guotai Junan Securities (Hong Kong) Ltd., Haitong International Securities Co., Ltd., ICBC International Securities Ltd., Industrial Bank Co., Ltd., Hong Kong Branch, Merrill Lynch (Asia Pacific) Ltd., Morgan Stanley & Co. International plc and SMBC Nikko Securities (Hong Kong) Ltd.

Listing for the notes is expected on the Hong Kong Exchange effective April 25.

Bank of East Asia is based in Hong Kong.

Issuer:	Bank of East Asia, Ltd.
Amount:	$500 million
Issue:	Subordinated notes, series 150
Maturity:	April 22, 2032
Bookrunners:	Bank of East Asia, Ltd. (Debt Capital Markets), Citigroup Global Markets Ltd., Goldman Sachs (Asia) LLC, HSBC Ltd., Standard Chartered Bank, ABCI Capital Ltd., Bank of China (Hong Kong) Ltd., BOCI Asia Ltd., Bocom International Securities Ltd., CCB International Capital Ltd., CEB International Capital Corp., Ltd., China Citic Bank International Ltd., China Everbright Bank Co., Ltd., Hong Kong Branch, China Minsheng Banking Corp., Ltd., Hong Kong Branch, Credit Agricole CIB, Deutsche Bank AG, Hong Kong Branch, Guotai Junan Securities (Hong Kong) Ltd., Haitong International Securities Co., Ltd., ICBC International Securities Ltd., Industrial Bank Co., Ltd., Hong Kong Branch, Merrill Lynch (Asia Pacific) Ltd., Morgan Stanley & Co. International plc and SMBC Nikko Securities (Hong Kong) Ltd.
Counsel to issuer:	Deacons (England, Hong Kong)
Counsel to bookrunners:	Linklaters (England)
Coupon:	4 7/8% until April 22, 2027; resetting to Treasuries plus 230 bps
Price:	99.846
Call option:	At the issuer’s option, with regulatory approval, on April 22, 2027 at par plus interest
Pricing date:	April 13
Issue date:	April 22
Listing date:	April 25
Ratings:	Moody’s: Baa2 (expected)
	S&P: BBB- (expected)
Distribution:	Regulation S
ISIN:	XS2423359459

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