Terence Lau

Terence has extensive experience of advising on capital market transactions, including bonds, equity-linked securities, regulatory capital instruments and liability management. He has an enviable track record of advising major financial institutions on their bond and regulatory capital offerings as well as investment funds and corporate clients on their debt and equity fundraising activities and strategic investments.

Terence advised on the first offshore RMB bonds issued directly by a PRC corporate, the first keepwell backed bond issued by a PRC corporate, the first issuance of Basel III AT1 securities by a PRC bank, the first issuance of C-ROSS-compliant (the PRC’s version of Solvency II) capital instruments, one of the first H share convertible bond issuances, the first London-listed and Frankfurt-listed RMB bonds by a PRC bank.

Terence is the leading lawyer on regulatory capital within the Greater China jurisdiction, having pioneered the development of Basel 3 compliant capital instruments in Hong Kong and China, the development of new capital instruments for the PRC insurance industry under the China Risk Oriented Solvency System and the development of capital instruments for PRC asset management companies.

Terence is also recognised as a trusted advisor to a number of Asian investment funds providing advice and expertise on complex investment structures covering the entire spectrum of equity-to-debt financing.

Terence has spent periods of time on secondment to the firm’s Tokyo office (in 2009) and Shanghai office (2010).

Work highlights

Terence has advised on many landmark transactions. These include advising:

• Hammer Capital on its secured bond financing of CHMT Peaceful Development Asia Property’s US$5.1 billion real estate acquisition of The Center - at the time the world’s most expensive commercial building
• a global investment bank on Country Garden’s US$3bn equity share placement and secured convertible bonds - the largest Asia (ex-Japan) equity/equity-linked issuance in the international markets since 2007  
• Deutsche Bank and HSBC as joint global coordinators on Baosteel Group Corporation’sRMB3.6bn RMB bonds, the first offshore RMB bond directly issued by a PRC corporate
• Bank of China and HSBC on China National Petroleum Corporation’s RMB3bn bonds, the first-keepwell backed bond issued by a PRC issuer
• Bank of China on its US$6.5bn 6.75% AT1 offshore preference shares, first issuance of Basel III compliant AT1 instruments by a PRC bank
• China Construction Bank on its RMB2bn 4.9% Tier 2 capital bonds, the first-issuance of RMB-denominated Basel III compliant tier 2 capital by a PRC bank
• Postal Savings Bank of China on its USD$7.25bn 4.5% AT1 offshore preference shares, the largest single issuance of bonds/capital securities by a PRC issuer
• China Cinda Asset Management on its $3.2bn 4.45% AT1 offshore preference shares - the first-issuance of AT1 capital by a PRC asset management company;
• China Life on its US$1.28bn 4% Core Tier 2 capital securities, the first C-ROSS compliant capital instruments issued by a PRC insurance company 
• J.P. Morgan, UBS, CICC as joint global coordinators on CRRC Corporation Limited’s US$600m zero coupon convertible bonds, one of the first H share convertible bond issuances by a PRC corporate
• BOC International as sole global coordinator on China COSCO’s US$1bn 4% credit enhanced bonds, the first-RMB standby letter of credit backed USD bonds
• China Construction Bank on its issuances of London listed bonds and Frankfurt listed RMB bonds, the first RMB bonds listed on the London Stock Exchange and Frankfurt Stock Exchange, respectively.

Terence is a member of the ICMA Asia Legal & Documentation Forum, which gathers the heads and senior members of the legal transaction management teams of ICMA member banks active in lead-managing syndicated bond issues in Asia, and of the China Credit Markets Committee and the Legal and Regulatory Working Group of Asia Securities Industry & Financial Markets Association (ASIFMA).

Terence studied law and business at the Bachelor of Laws University of Technology Sydney, Australia, and holds a postgraduate certificate in laws from the University of Hong Kong.

Terence is UK and Hong Kong qualified. He is fluent in English, Mandarin and Cantonese.