Articles Published  13.04.2017

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Bank of China (Luxembourg) S.A. successfully issued new series of Schengen Bond


Bank of China

  Source: Bank of China (Luxembourg) S.A.


Bank of China (Luxembourg) S.A. successfully issued € 500mn of three-year floating rate notes under the USD 30bn MTN Programme of Bank of China Limited.

April 11, Bank of China (Luxembourg) S.A. successfully issued € 500mn of three-year floating rate notes under the USD 30bn MTN Programme of Bank of China Limited. Bank of China Limited, Luxembourg Branch provided the guarantee to the issue. The deal received a total of € 2.548 billion in effective orders from 125 investors all over the world, representing 5.1 times over-subscription. 

More than 70% of the book was invested by European investors. The deal attracted attention from 5 central banks and sovereign investors from Europe and Asia, representing 15% of the total book. Funds, insurance and pension funds got 49% of the total allocation; while 29% of the investment came from banks, followed by 7% from corporate investors. 

This is the first time that Bank of China Limited issued bonds under the name of its overseas subsidiary with guarantee from a full branch. The deal creates not only a new model of capital market financing, but also one step further in the Bank’s strategic development in the local market. 

Following the first-ever “Schengen Bond” (RMB) issued in 2014 and the “Green Schengen Bond” (green bond, euro dollars) issued last year, this issuance named “Schengen Bond III” marks another milestone in Bank of China’s bond issuance history. The success of this bond issuance gains high recognition from global investors and provides a solid funding to support local business development and proves again the attractiveness of the Bank. Following the strategic goal of “Serving Society, Delivery Excellence”, Bank of China Luxembourg will continuously support local economics and link European business with international markets. 

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