NEW DEAL: ICBC Asia US$ AT1 Perp NC5, IPT 4.75% Area

Issuer: Industrial and Commercial Bank of China (Asia)
Issuer ratings: A2/–/A
Basel-III non-cumulative subordinated AT1
Exp. issue rating: Ba1/–/–
Reg S
UOP: Funding, GCP
Distribution rate: Fixed rate, subject to fixed reset periods, payable semi-annually in arrears
Distribution rate reset: On the 5th anniversary and every 5yrs thereafter, reset to a new fixed distribution rate equal to the then prevailing 5Y UST plus a fixed initial spread. No step up
Distribution payment: Fully discretionary and non-cumulative at the sole discretion of the issuer
Mandatory distribution cancellation event:
When distributions scheduled to be paid together with any dividends or other payments on any parity obligations, exceed the distributable reserves at such distribution payment date; or
The Hong Kong Monetary Authority directs the issuer to cancel such distribution
Dividend stopper: If scheduled distribution payment is not made in full, the issuer shall not:
Declare or pay in cash any distribution or dividend on any shares; or
Purchase, cancel or otherwise acquire any shares or permit any of its subsidiaries to do so
Optional redemption: In whole, but not in part, on the first call date or any distribution payment date thereafter. subject to HKMA’s prior approval
Non-viability loss absorption: If a non-viability event occurs and is continuing, the issuer shall reduce the then principal amount and cancel any accrued but unpaid distribution by an amount equal to the non-viability event write-off amount
Non-viability event: The earlier of:
HKMA notifying the issuer that a write-off or conversion is necessary;
HKMA notifying the issuer that a public sector injection of capital or equivalent support is necessary; without which the issuer would become non-viable
Non-viability event write-off amount:
Full write-off if the Written-off amount is not sufficient for the non-viability event to cease to continue;
Full write-off before any public sector injection of capital or equivalent support
The non-viability event write-off amount will be pro rata to the principal amount of that AT1
Hong Kong Bail-in Power: AT1 is subject to all or a part of the principal or distributions reduction or cancellation; conversion of all or a part of the AT1 into shares or other securities or other obligations of the issuer; and amendment or alteration of terms and conditions of the AT1 by HKMA
Tax/tax deduction/ regulatory redemption: In whole, but not in part, the outstanding principal amount together with Distributions accrued. Subject to HKMA’s prior approval
JGCs/JBRs: ICBC, GS
JBRs: ICBC, GS, BofAML, Citi, DB, HSBC, UBS

Comps:

China
ICBCAS 6 12/29/49 $105.625 4.136%
BCHINA 6 3/4 10/31/49 $107.375 4.233%
CCB 4.65 12/29/49 $101.500 4.220%
BOCOM 5 12/29/49 $102.000 4.399%
Hong Kong
CINDBK 7 1/4 04/29/49 $105.500 5.091%
BNKEA 5 1/2 12/29/49 $99.750 5.563%