Nine law firms have assisted two Macau branches of Chinese banks to issue notes, which are the first such issuances under the direct linkage of the Hong Kong Monetary Authority (HKMA) and the Monetary Authority of Macao (AMCM) bond market platforms.
Bank of China’s Macau branch issued a two-year RMB1 billion (USD137.35 million) bond with a 2.5% interest rate on 21 January, which is part of the bank’s USD40 billion medium-term note programme.
Industrial and Commercial Bank of China’s Macau branch (ICBC Macau) issued three-year USD250 million floating-rate notes on 22 January, which is part of its USD20 billion global medium-term note programme.
The bonds were listed on the MOX, Macau’s bonds trading platform, and cleared through the AMCM’s Macao Central Securities Depository and Clearing (MCSD), which connected with the HKMA’s Central Moneymarkets Unit (CMU) on 21 January.
JunZeJun Law Offices acted as BOC Macau’s PRC counsel, with Linklaters partner Michael Ng advising on international law and MdME Lawyers partner Tirso Olazábal counselling on Macau law.
MdME’s team advised on sales restrictions, Macau’s tax regime and the city’s Financial System Act, which was amended in 2023.
“The Financial System Act was recently amended to transform the bond issuance process from an approval-based system to a registration-based system. This shift has streamlined the bond issuance procedure, making it more efficient and accessible for issuers,” Olazábal said.
Jingtian & Gongcheng advised on PRC law for the underwriters, while STA Lawyers counselled on Macau law and A&O Shearman partner Agnes Tsang acted as the international law counsel.
King & Wood Mallesons acted as ICBC Macau’s PRC counsel, with Jose Lupi & Associates’ managing partner Jose Lupi advising on Macau law. Linklaters partners Terence Lau and Fang Min counselled on international law.
Jingtian & Gongcheng advised the underwriters on PRC law, CFB Lawyers founding partners Bernadete Fan and Hugo Maia Bandeira counselled on Macau law and A&O Shearman partner Tsang dealt with international law matters.
Under the direct link between the CMU and MCSD, Hong Kong investors can settle, clear and hold bonds on the MCSD through their CMU accounts, according to A&O Shearman. The same applies to Macau investors with MCSD accounts.
After the connection was formed on 21 January, the Macau government aimed to attract a diverse range of non-local institutions to raise funds via the city’s bond market through the direct link with the CMU, the AMCM said.
