Allen & Overy has advised Bangkok Bank on its USD750 million inaugural AT1 Subordinated Notes issuance to offshore institutional investors

The AT1 Subordinated Notes were issued by its Hong Kong branch and mark the first Basel III-compliant Tier 1 USD-denominated bonds by Bangkok Bank and the largest issue size of an AT1 capital instrument issued by a Thai commercial bank to date. The AT1 Subordinated Notes were offered under Rule 144A/Regulation S of the U.S. Securities Act and will also qualify as Additional Tier 1 capital of Bangkok Bank pursuant to the Bank of Thailand’s capital adequacy regulations.

Our work on this AT1 issuance follows our team’s earlier work advising Bangkok Bank on the USD1.2 billion Tier 2 Subordinated Notes issuance by its Hong Kong branch to offshore investors in September 2019.

Doungporn Prasertsomsuk, counsel with Allen & Overy’s Bangkok office, commented: “We are delighted to have worked with our long-standing and valued client Bangkok Bank on these prominent Tier 1 and Tier 2 capital transactions, particularly given the distinctive perpetual non-call five-year and 15 year non-call 10 structures of the respective issuances.”

The Allen & Overy team was led by Bangkok-based partner Stephen Jaggs and counsel Doungporn Prasertsomsuk, with support from Bangkok-based associate Natthicha Wiriyatornphan. Hong Kong-based partner Agnes Tsang and Hong Kong-based associate Erica Lo advised on the Hong Kong law elements of the transaction.

Allen & Overy’s involvement in this deal preceded our more recent role advising on the issuance of AT1 preference shares to the value of USD2.9 billion by Industrial and Commercial Bank of China Limited, and follows our role advising on the first Basel III-compliant AT1 offshore regulatory capital issuance to the value of USD300 million by leading Philippines-based bank Rizal Commercial Banking Corporation.

Disclaimer: 

^{The information contained herein is restricted and is not for publication, distribution or release in or into the United States of America, Australia, Canada, Japan or South Africa. This announcement is not an offer of securities for sale or a solicitation of an offer to purchase securities in the United States or any other jurisdiction. The securities referred to herein (the “Securities”) have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not, subject to certain exceptions, be offered or sold in the United States or to or for the account or benefit of a person located in the United States}