Linklaters advises Bank of China on the world’s first sustainability re-linked notes
Linklaters acted as international legal advisor to Bank of China, London Branch on the offering of its US$300m 3-year sustainability re-linked notes.
The proceeds of the notes are being used to finance and/or refinance eligible sustainability linked loans (SLLs) of the bank. The notes feature an innovative mechanism whereby the coupon of the notes will be adjusted, through a relinking mechanism, in accordance with the performance of the sustainability performance targets of the underlying SLLs.
The notes were issued pursuant to Bank of China’s Sustainability Re-Linked Bond Management Statement, with the purpose of enabling more capital flow towards sustainable finance, supporting corporates' efforts in improving the ecological environment, tackling climate change, resource conservation and efficiency, increasing social benefits, and enhancing the corporate governance system.
The Linklaters team was led by capital markets partner Michael Ng and counsel Grace Wee, with support from managing associate Allen Zhang.
Linklaters has supported clients on some of the most innovative and high profile ESG transactions, including advising on a host of firsts in the bond market in Asia and globally:
- Europe’s first sustainability-linked bonds by Enel
- New World Development’s sustainability-linked bonds – the world’s first US dollar sustainability-linked bonds by a real estate company
- China Construction Bank's landmark multi-branch ESG bond issuance – the first sustainability-linked bonds by a PRC issuer and an Asian financial institution
- the world’s first sovereign sustainability sukuk by the Government of Malaysia
