Dentons advises CITIC Bank on gaining approval from the CSRC for its public issuance of A-share convertible corporate bonds

On December 17, 2018, CITIC Bank's proposal of publicly issuing A-share convertible corporate bonds was approved by the China Securities Regulatory Commission (CSRC). A Dentons team provided a full scope legal assistance on this matter.

The concerned convertible bonds and A-shares of China CITIC Bank will be listed on the Shanghai Stock Exchange. The total amount of convertible bonds to be issued is no more than RMB 40 billion, with a maturity of six years. The bonds can be converted to shares on the first trading day after the expiration of six months from the date of the issuance of the bonds until the maturity of the convertible bonds. The method for determining the coupon rate and the final interest rate for each interest-bearing year of the convertible bonds were determined by the board of directors of CITIC Bank (authorized by the shareholders' meeting) in accordance with the national polices, market conditions and the specific circumstances of the bank prior to the issuance.

The Dentons team was led by senior partner Guo Qing, assisted by Qu Xiangang, Tan Zhenghua, Wang Yunsong, Liu Tianjiao, Liu Jia, Chen Bojian, Dai Yilin, Shen Jingyuan, etc. In accordance with relevant laws and regulations, the team conducted in-depth and comprehensive due diligence on the subsidiaries and branches of CITIC Bank, issued an attorney's opinion letter for this deal, assisted in communication with the regulatory authorities, and provided solutions for major legal problems which were of great concern of the authorities. They overcame many difficulties, including complex work, numerous subordinate organizations involved and long project duration, and finally assisted the client in successfully gaining the approval from the CSRC for this transaction through their cooperation, perseverance and conscientiousness. Their work was highly appreciated by the client.