New Issue: Bank of Qingdao prices $1.2 billion 5˝% perpetual preference shares

By Marisa Wong

Morgantown, W.Va., Sept. 13 – Bank of Qingdao Co., Ltd. priced $1,203,000,000 of 5˝% non-cumulative perpetual offshore preference shares, according to a notice.

The preference shares, each with a par value of RMB 100, will be issued in dollars at the liquidation preference of $20.00 each.

The dividend rate will reset on Sept. 19, 2022 and every five years after that. The reset rate will be the sum of the benchmark rate plus a fixed margin of 376.1 basis points.

Citic CLSA Securities, Haitong International, AMTD, CMB International, CCB International, Deutsche Bank, SPDB International, Huarong Financial, Orient Securities (Hong Kong), China Industrial Securities International, Zhongtai International, CNCB HK Capital, Standard Chartered Bank, China Silk Road International, BOC International, ABC International, UBS, Guotai Junan International, Citi, HSBC and China Securities International are the joint bookrunners and joint lead managers.

Citic CLSA Securities, Haitong International, AMTD, CMB International, CCB International and Deutsche Bank are also joint global coordinators.

Earlier this month, the company announced plans to issue up to 80 million preference shares with a par value of RMB 100 per share, with proceeds capped at RMB 8 billion or its equivalent in foreign currencies.

Funds raised will be used to replenish the bank’s tier 1 capital, as previously noted.

The bank is based in Qingdao, China.

Issuer:	Bank of Qingdao Co., Ltd.
Issue:	Non-cumulative offshore preference shares
Amount:	$1,203,000,000
Maturity:	Perpetual
Bookrunners:	Citic CLSA Securities, Haitong International, AMTD, CMB International, CCB International, Deutsche Bank, SPDB International, Huarong Financial, Orient Securities (Hong Kong), China Industrial Securities International, Zhongtai International, CNCB HK Capital, Standard Chartered Bank, China Silk Road International, BOC International, ABC International, UBS, Guotai Junan International, Citi, HSBC and China Securities International
Dividend rate:	5˝%; resets Sept. 19, 2022 and every five years after that at benchmark rate plus 376.1 bps
Price:	Par of $20.00
Call option:	In whole or in part at par plus accrued dividends on first reset date and any dividend payment date after that
Put option:	No
Pricing date:	Sept. 12
Settlement date:	Sept. 19
Distribution:	Regulation S

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