Banking News
- Export-import bank to sell bonds in HK
Date: 8-Aug-2007 Sources: (Xinhua Online)
THE Export-Import Bank of China is to start selling 2 billion yuan (US$262 million) worth of bonds in Hong Kong on Friday, in what will be the second offshore Chinese currency bond issue, market sources said yesterday.
The issue will initially be split equally between retail and institutional investors but bonds issued to institutional investors will have a three-year tenor compared with a two-year tenor for the retail portion, the sources said.
The issue follows on the heels of China Development Bank's 5 billion yuan bond issue in Hong Kong earlier this summer - China's first yuan-denominated offshore bond issue - which drew robust demand from investors who see the product as a chance to bet on further appreciation of the Chinese currency.
The Central Government earlier this year gave mainland financial institutions the green light to issue yuan bond issues in Hong Kong. They are only open to Hong Kong residents with yuan deposit accounts at Hong Kong banks.
Market sources said the annual interest rate on China Export-Import Bank's bond would be slightly above that of the China Development Bank issue, which carries a 3 percent coupon and a 3.02 percent annualized yield.
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