Bonds News
- China Exim Bank to issue 2 bln yuan RMB bonds in Hong Kong
Date: 10-Aug-2007 Sources: (People's Daily)
The Export-Import Bank of China, one of the country's three policy banks, announced here Thursday that it will issue 2 billion yuan (about 264 million U.S. dollars) worth of Renminbi-denominated bonds in Hong Kong starting from Friday.
This is the second time for Chinese mainland financial institutions to issue RMB bonds in Hong Kong following the issue of 5 billion yuan bonds by the China Development Bank in June.
The 2 billion yuan bonds will be issued to both institutional and individual investors, each at 1 billion yuan. The duration of the bonds for individual investors is two years, with a 3.05 percent yield, 0.05 percent higher than the bonds of the China Development Bank.
The bonds for institutional investors will have a duration of three years with the yield planned to be set on Aug. 21, a day after the subscription period ends.
The joint lead managers and bookrunners for the bond issue are the Bank of China (Hong Kong) and the Hong Kong and Shanghai Banking Corporation Limited.
The distributors comprise 17 placing banks with branches in Hong Kong, including the Bank of Communications, China Construction Bank (Asia), Dah Sing Bank, and the Bank of East Asia. The minimum subscription for an individual investor is 10,000 yuan.
'The issuance of RMB bonds in Hong Kong opens a new chapter for Hong Kong's RMB business and also serves as a milestone for the financial cooperation between Hong Kong and the mainland,' said Ma Si-hang, secretary for the Commerce and Economic Development of the Hong Kong Special Administrative Region government.
Export-Import Bank of China President Li Ruogu said that the issuance of RMB bonds in Hong Kong is a major step in the development of financial sectors both in Hong Kong and in the mainland and will also contribute to consolidating Hong Kong's status as an international financial center.
Hong Kong banks started to handle RMB business in 2004, and by the end of June this year, the RMB deposits in Hong Kong had reached 27.6 billion yuan. (One U.S. dollar equals 7.564 yuan)
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