New Issue: Luso International prices $350 million 10-year subordinated capital bonds at par

By William Gullotti

Buffalo, N.Y., July 3 – Luso International Banking Ltd. sold $350 million of dated subordinated capital bonds due 2033 at par, according multiple listing documents on Monday.

The subordinated bonds come with a non-viability loss absorption feature, permitting the bank to unilaterally and irrevocably write off amounts of both principal and interest without incurring an event of default.

Distributions start at 7.2% per year. The rate will reset to Treasuries plus 316.2 basis points on June 30, 2028.

The bonds may be redeemed in whole, but not in part, at the issuer’s option at par plus unpaid dividends on the interest reset date. They may also be redeemed early at any time for taxation reasons, tax deduction reasons or regulatory reasons.

DBS Bank Ltd., Luso Bank Ltd., HSBC, ABC International, Bank of China Macau Branch, Bocom International, China Citic Bank International, China Industrial Securities International, China International Capital Corp., China Minsheng Banking Corp., Ltd., Hong Kong Branch, Citic Securities, CMBC Capital, CMB Wing Lung Bank Ltd., CNCB Capital, Guolian Securities International, Guotai Junan International, Guoyuan Securites (Hong Kong), Haitong International, Huajin Securities International, Huatai International, ICBC (Macau), Macau Chinese Bank, SMBC Nikko, SPDB International, Standard Chartered Bank and Bank of East Asia, Ltd. are the joint lead managers and joint bookrunners for the Regulation S offering, with DBS, Luso and HSBC also acting as joint global coordinators.

Proceeds will be treated as tier 2 capital and used to replenish the bank’s supplementary capital.

Listings for the bonds are expected on both the Hong Kong Exchange and the Chongwa (Macao) Exchange effective July 3.

The bank is a full-service bank, which operates primarily in Macau.

Issuer:	Luso International Banking Ltd.
Amount:	$350 million
Issue:	Dated subordinated capital bonds
Maturity:	June 30, 2033
Bookrunners:	DBS Bank Ltd., Luso Bank Ltd., HSBC, ABC International, Bank of China Macau Branch, Bocom International, China Citic Bank International, China Industrial Securities International, China International Capital Corp., China Minsheng Banking Corp., Ltd., Hong Kong Branch, Citic Securities, CMBC Capital, CMB Wing Lung Bank Ltd., CNCB Capital, Guolian Securities International, Guotai Junan International, Guoyuan Securites (Hong Kong), Haitong International, Huajin Securities International, Huatai International, ICBC (Macau), Macau Chinese Bank, SMBC Nikko, SPDB International, Standard Chartered Bank and Bank of East Asia, Ltd.
Trustee:	Bank of New York Mellon, London Branch
Counsel to issuer:	Clifford Chance (England, Hong Kong), Jorge Neto Valente, Advogados e Notarios Privados (Macao)
Counsel to underwriters:	Linklaters (England, Hong Kong), MdME Lawyers (Macao), King & Wood Mallesons (China)
Coupon:	7.2% starting rate; resets to Treasuries plus 316.2 bps on June 30, 2028
Price:	Par
Yield:	7.2%
Call:	At par plus interest, in whole and not in part, on June 30, 2028; at any time for taxation reasons, tax deduction reasons or regulatory reasons at par plus interest
Trade date:	June 27
Settlement date:	June 30
Listing date:	July 3
Distribution:	Regulation S
ISIN:	XS2639510341

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