Shangri-La Launches First 5-Year Panda Bond by a Hong Kong-Based Enterprise

(Hong Kong, 19 July 2024) Bank of China (“BOC”), China Merchants Securities (“CMS”) and China Merchants Bank (“CMB”) are pleased to announce the successful issuance of Shangri-La Asia Limited’s (HKEX stock code: 00069/SGX stock code: S07) (“Shangri-La”) Panda Bond. Two tranches were issued: a RMB 600 million 3-year MTN, and a RMB 400 million 5-year MTN. This follows the RMB 1 billion 3-year note previously issued on 5 June 2024. Shangri-La had earlier set up a RMB 20 billion MTN Programme. This is the second issuance of that programme. The 3-year note was subscribed 3.25x, and the 5-year note 1.98x. The coupon of the 3-year note is 2.27% while the coupon for the 5-year note is 2.5%. Both issues are AAA-rated by China Lianhe Credit Rating Co., Ltd. in line with the rating on both Shangri-La and the previous RMB 1 billion issue. Proceeds raised from the issuance will be used for general corporate purposes.

Mr Zhu Lei, Head of Debt Capital Markets, Investment Banking Department, BOC, said: “This is the first 5-year Panda Bond issuance by a Hong Kong-based enterprise. The 3-year Panda MTN coupon rate is a record low and affirms investor’s confidence in Shangri-La.”

Mr. Li Shouyi, Member of Investment Banking Committee, Head of Division I, Fixed Income and Financing Department, CMS said: “This is our second time working with Shangri-La following the successful inaugural issue in June which also saw strong demand and was subscribed 4.09x. We look forward to continuing with this successful working relationship.”

Mr. Wang Xinghai, Executive Vice President of CMB Shenzhen Branch said: “CMB is delighted to participate in Shangri-La’s Panda Bond issuance, which is also our first cooperation with Shangri-La in the onshore bond market. We are encouraged by the good results and look forward to continuing our all-round strategic cooperation.”

Mr. Alfred Wu, Head of Corporate Finance and Treasury of Shangri-La said, “This successful issuance allows us to continue expanding and deepening our funding sources onshore whilst better match our currency and asset geographical exposure. We are very pleased with the strong support received from investors.”

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About Bank of China

Bank of China is the bank with the longest continuous operation among Chinese banks.  Formally established in February 1912, and a wholly state-owned commercial bank since 1994, the Bank provides various financial services, and has developed into a large commercial bank delivering services in local and foreign currencies and featuring complete business varieties and strong strength.

The Bank was listed on the Hong Kong Stock Exchange and the Shanghai Stock Exchange in 2006, becoming the first Chinese bank to launch an A-Share and H-Share initial public offering and achieve a dual listing in both markets. As China’s most globalised and integrated bank, Bank of China has institutions across the Chinese mainland as well as 64 countries and regions, and BOCHK and the Macau Branch serve as local note-issuing banks in their respective markets.

About China Merchants Securities

China Merchants Securities co. Ltd. (CMS) is a leading investment bank in China, with a highly integrated and collaborative full-service business model. Adhering to a client-oriented approach, we provide clients with all-round professional services of Wealth-Management and Institutional business, Investment Banking, Investment Management, Investment and Trading. CMS wholly owns CMS International, CMS Asset Management, China Merchants Futures, CMS Zhiyuan, China Merchants Investment, and is a shareholder of Bosera Funds and China Merchants Fund, building a comprehensive service platform integrating both domestic and international business.

Under the control of China Merchants Group, the Company fully benefits from the brand influence of “China Merchants” and the industrial and financial resources within the Group. Strongly supported by China Merchants Group, the Company has continued to grow and develop and achieve A+H share listing. It has always maintained a market-oriented operating mechanism and a sound corporate governance structure to provide a solid guarantee for the Company’s steady and long-term development.

As the premiere domestic securities company, China Merchants Securities shares a growing history with the domestic securities markets and the company always remains a forerunner for development and innovation in the capital market through our constant quest for excellence and outstanding accomplishments.

About China Merchant Bank

China Merchants Bank (CMB) is China’s first joint-stock commercial bank wholly owned by corporate legal entities. After 37 years of growth, it has evolved into a banking group listed in both Shanghai and Hong Kong, with financial licenses covering commercial banking, financial leasing, fund management, life insurance, overseas investment banking, consumer finance, and wealth management subsidiary, etc.

CMB has adhered to the principle of staying market-oriented, customer-centric, tech-driven, and expert-led, and promoted continuous social and economic progress through its own transformation and development. In 2023, CMB ranked 179th on the Fortune Global 500 List, and 11th on the list of “Top 1,000 World Banks” released by The Banker (UK). CMB was honored with the “Best Bank in China” award by Euromoney for five consecutive years, marking the first “Five Consecutive Championships” of this award in history.

About Shangri-La Group

Shangri-La Group is one of the world’s premier developers, owners and managers of hotel and investment properties which comprises office buildings, commercial real estate and serviced apartments/residences. The Group’s other principal activities include hotel management services as well as property development for sale. It currently owns and/or manages over 100 hotels globally in more than 75 destinations under the Shangri-La, Kerry, JEN by Shangri-La and Traders brands. Prominently positioned in Asia, the Group has a substantial pipeline of upcoming hotel and mixed-use development projects in Australia, Mainland China, Cambodia, and Japan. For more information, please visit https://www.shangri-la.com/group/.