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Bank of China issues dual-currency floating rate notes referencing new benchmarks (SOFR Index and SONIA Compounded Index)

Allen & Overy has advised the joint lead managers on Bank of China Limited’s issuance of USD917 million equivalent dual-currency floating rate notes, referencing new benchmarks set to replace LIBOR, under its USD40 billion medium term note programme.

The dual-tranche offering of floating rate notes comprises USD500m bonds referencing Secured Overnight Financing Rate (SOFR) Index due 2024 and GBP300m bonds referencing Sterling Overnight Index Average (SONIA) Compounded Index due 2023.

The sterling-denominated bonds are the first public offering of non-sovereign senior SONIA-linked bonds in the world and the first SONIA-linked offering by a Chinese issuer. This is also the second time that Bank of China has successfully issued U.S. dollar-denominated new benchmark floating rate bonds, following its first issuance of the SOFR-based bonds in 2019.

Applications have been made for the SOFR-linked bonds issued by Bank of China Limited, Hong Kong Branch to be listed on The Stock Exchange of Hong Kong Limited and the SONIA-linked bonds issued by Bank of China Limited, London Branch to be listed on the International Securities Market of the London Stock Exchange.

The A&O team was co-led by partners Jaclyn Yeap and Agnes Tsang, with support from Alan Zhang, Evelyn Zhu, Rey Zhu, Rachel Cheung and Eugean Lo.

A&O are proud to have supported Bank of China in its IBOR transition process. The Firm’s involvement in this transaction follows our advice on Bank of China Macau Branch’s issuance of the first SOFR-based bonds in Asia in October 2019.


The information contained herein is restricted and is not for publication, distribution or release in or into the United States of America, Australia, Canada, Japan or South Africa.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 bonds 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.