Zhongyuan Bank Co., Ltd.’s HK$5,670 Million Placement

Herbert Smith Freehills has advised the placing agents and joint global coordinators.

Huatai Financial Holdings (Hong Kong) Limited, CLSA Limited, China Securities (International) Corporate Finance Company Limited and China Merchants Securities (HK) Co., Limited acted as placing agents and joint global coordinators on the HK$5,670 million placement of Zhongyuan Bank Co., Ltd. (01216. HK).

A city commercial bank in Henan province in China, Zhongyuan Bank ranked 186th amongst the top 1,000 banks in the world by The Banker (UK) in 2020 and the 31st among PRC banks on the list. Zhongyuan Bank was on Fortune’s list of China’s top 500 enterprises in 2020, ranking the 23rd amongst the commercial banks on the list.

The placement comprises approximately 3,150,000,000 new H shares at a price of HK$1.80 per share. These shares account for approximately 15.69% of the existing issued shares of Zhongyuan Bank and approximately 13.56% of the issued shares as enlarged by the placing. Proceeds from the placement will be used to replenish core tier-1 capital of the bank.

Partner Jeremy Shen (Picture) led the HSF Hong Kong team advising on the deal. Senior associate Jaime Fong and trainee solicitor Colbert Hung provided support. Senior foreign registered lawyer Jin Kong advised on US securities aspects of this transaction.

Involved fees earner: Jaime Fong – Herbert Smith Freehills; Jin Kong – Herbert Smith Freehills; Jeremy Shen – Herbert Smith Freehills;

Law Firms: Herbert Smith Freehills;

Clients: China Merchants Securities ; China Securities (International) Finance; CLSA Limited; Huatai Financial Holdings Limited;

Giulia Di Palma

Author: Giulia Di Palma