By William Gullotti
Buffalo, N.Y., Dec. 29 – Luso International Banking Ltd. sold an additional $150 million of tier 2 capital bonds due May 29, 2034 at par, according multiple listing documents on Friday.
The Regulation S add-on will be consolidated with the initial $280 million issued Nov. 29 to form a single series after settlement, subject to the same indenture.
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 7½% per year. The rate will reset to Treasuries plus 301.1 basis points on May 29, 2029.
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.
China Industrial Securities International, DBS Bank Ltd., Luso Bank Ltd., Bank of China Macau Branch, CCB International, Citic Securities, CMBC Capital, Huafu International, ICBC (Macau) and TF International are the joint lead managers and joint bookrunners for the add-on, with China Industrial, DBS and Luso 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 additional bonds are expected on both the Hong Kong Exchange and the Chongwa (Macao) Exchange effective Dec. 29.
The bank is a full-service bank, which operates primarily in Macau.
| Issuer: | Luso International Banking Ltd.
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| Amount: | $150 million
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| Issue: | Dated subordinated capital bonds add-on
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| Maturity: | May 29, 2034
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| Bookrunners: | China Industrial Securities International, DBS Bank Ltd., Luso Bank Ltd., Bank of China Macau Branch, CCB International, Citic Securities, CMBC Capital, Huafu International, ICBC (Macau) and TF International
|
| Trustee: | Bank of New York Mellon, London Branch
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| Counsel to issuer: | Clifford Chance (England, Hong Kong)
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| Counsel to underwriters: | Linklaters (England, Hong Kong), MdME Lawyers (Macao), King & Wood Mallesons (China)
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| Coupon: | 7½% starting rate; resets to Treasuries plus 301.1 bps on May 29, 2029
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| Price: | Par, plus accrued interest from Nov. 29 to Dec. 27 (inclusive)
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| Yield: | 7½%
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| Call: | At par plus interest, in whole and not in part, on May 29, 2029; at any time for taxation reasons, tax deduction reasons or regulatory reasons at par plus interest
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| Trade date: | Dec. 21
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| Settlement date: | Dec. 28
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| Listing date: | Dec. 29
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| Distribution: | Regulation S
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| ISIN: | XS2720193981
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| Total issue: | $430 million, including $280 million issued Nov. 29
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