The International Central Securities Depositories (ICSDs) Clearstream Banking S.A. and Euroclear Bank SA/NV have appointed Bank of China (Hong Kong) Limited (BOCHK) as common depository, safekeeper and service provider for international securities, also known as Eurobonds.
The two ICSDs act jointly as the central hub of ISIN allocation, issuance and deposit for Eurobonds. They work with a number of large financial institutions worldwide acting as common depositories and safekeepers to support issuers and their agents across the international capital market. As a result, issuers benefit from greater investor reach by leveraging the ICSDs’ international client bases and multi-currency model.
This international issuance model is supported by an interoperable link between the two ICSDs allowing clients to settle cross-border transactions seamlessly throughout the day, thereby increasing the liquidity available to market participants.
BOCHK applied to, and successfully passed, the recent common depository qualification process and will be appointed as common depository, safekeeper and service provider to support the ICSDs’ global Eurobonds issuance model.
BOCHK is expected to start its common depository service operations as from 1 August 2025.
This geographic extension of the ICSD safekeeping network demonstrates the attractiveness of the Eurobond model for Asia-Pacific (APAC) issuers. Leveraging Asian operations of common depositories facilitates primary market activities, including syndicated distributions, from the start of the business day in Asian markets supporting more efficient use of cash and securities. Likewise, it allows an even closer connection to the APAC issuance and investor communities for a more efficient servicing of the securities throughout their lifecycle.
Andrew Law, Head of Custody and Trust Services at Bank of China (Hong Kong), commented:
“We are proud to support the expansion of the Eurobond market, fostering greater participation from issuers and investors across the Asia-Pacific region. As a leading financial institution, BOCHK is uniquely positioned to leverage its extensive network, local expertise and robust infrastructure to facilitate seamless access to international capital markets. Drawing on its deep ties to the Chinese market, BOCHK further diversifies and enriches the participant base of the Eurobond market. We are committed to driving financial innovation and enhancing liquidity for our clients, meeting the growing demand for diversified investment opportunities. BOCHK will continue to strengthen its role as a trusted partner in global finance and support the evolving needs of its clients.”
Kathleen Holemans, Head of Network Management at Euroclear, commented:
“We are extremely pleased to be announcing the appointment of Bank of China (Hong Kong) as common depositary for our Eurobonds. Eurobonds represent one of the world’s largest fixed-income markets, and we have been at its core for nearly 60 years. With a current value of over €13 trillion, the Eurobond market is a success story offering a reliable, secure and efficient way for issuers to access capital. In our role as a Financial Market Infrastructure, we are committed to providing a gateway to the world providing stable capital flows that support the growth of international financial markets.”
Jan Willems, Head of Global Markets at Clearstream, added:
“Clearstream is delighted to welcome Bank of China (Hong Kong) to our common depository network. This collaboration further expands the reach of the Eurobond market within the dynamic Asia-Pacific region. With over 2,000 new Eurobonds issued daily, offering a choice of over 50 governing laws and 50 currencies, we are providing unparalleled flexibility for investors and issuers alike. Clearstream is deeply committed to continue driving this global success story hosted in Europe, empowering market players worldwide with efficient and established financing solutions. BOCHK’s expertise will be invaluable in connecting APAC participants to this deep and liquid market.”
