Clifford Chance advises on Cathay Life Insurance’s inaugural offshore regulatory capital issuance

Global law firm Clifford Chance has acted as international counsel to Citi, J.P. Morgan and Morgan Stanley as the joint lead managers on the issuance of US$600 million 5.95% subordinated capital bond due 2034 by Cathay Life Insurance through a Special Purpose Vehicle (SPV). The bond issuance is intended to qualify as Tier 2 capital of Cathay Life Insurance.

Cathay Life Insurance is the first Taiwanese life insurance company to raise regulatory capital from the offshore bond market, utilising the revised regulations issued by Taiwan’s Financial Supervisory Commission.

Partner Mark Chan led the deal team and was supported by senior associate George Mok and associate Louis Yee.

Mark said, “This transaction is a major milestone for Cathay Life Insurance, paving the way for increased access to capital for Taiwanese life insurance companies. This transaction also reinforces our position at the forefront of advising on regulatory capital and other complex debt instruments.”

The firm has a track record of advising on landmark debt issuances including HKMC’s triple-tranche issuance of HK$12 billion benchmark bonds, New World Development’s dual tranche green perpetual bond and social bond and the world’s largest retail green bond issuance by the Hong Kong SAR Government.