BOCI issues CNH 200m fully digital structured notes originated by UBS

Niederer Kraft Frey advised UBS on all Swiss structuring, legal and regulatory aspects in connection with the origination of the issuance of CNH 200 million fully digital (tokenised) structured notes by Bank of China International Holdings (BOCI), making BOCI the first Chinese financial institution to issue a tokenised security in Hong Kong. The product was placed to UBS’ clients in Asia Pacific. The placement is part of a long-term collaboration between BOCI and UBS in the space of digital structure notes.

By issuing these digital securities, both BOCI and UBS have taken new steps in terms of applicable law and blockchain types. This transaction marks the first product of its kind in Asia Pacific constituted under Hong Kong and Swiss law and tokenised on the main Ethereum blockchain, successfully introducing regulated securities onto a public blockchain. As an overseas investment banking institution of the BOC Group, BOCI has a long history in serving various types of clients through continuous product innovation. BOCI was the first Chinese financial institution to issue structured notes overseas. At present, BOCI is a leading Chinese issuer with a full range of products, large volume of issuance and complete services to its clients.

The NKF team was led by partner Philip Spoerlé (Capital Markets/Financial Instruments), working with partner Thomas Frick (Fintech/Financial Services) and associates Nina Bremi (Banking & Finance) and Benedikt Hadorn (Capital Markets).

Linklaters LLP acted as Hong Kong legal advisors to UBS. The Linklaters team was led by partners Chin-Chong Liew and Jonathan Horan (both Capital Markets).

The UBS team was led by Dr. iur. Anna-Naomi Bandi-Lang and Christoph Felder.