now loading...
Wealth Asia Connect Middle East Treasury & Capital Markets Europe ESG Forum TechTalk
CDB introduces longest-dated dim sum bonds
China Development Bank raised 2.5 billion renminbi (US$397 million) from a dual-tranched offshore renminbi bond offering, including a 20-year tranche that represented the longest-dated issuance in the dim sum bond market. The Chinese policy bank priced the one billion renminbi 20-year tranche and the 1.5 billion renminbi three-year tranche to yield 4.3% and 2.9% respectively.
Gita Dhungana 12 Sep 2012

China Development Bank raised 2.5 billion renminbi (US$397 million) from a dual-tranched offshore renminbi bond offering, including a 20-year tranche that represented the longest-dated issuance in the dim sum bond market. The Chinese policy bank priced the one billion renminbi 20-year tranche and the 1.5 billion renminbi three-year tranche to yield 4.3% and 2.9% respectively.


The Reg S offering, priced on July 26, was 3.3× subscribed with more than 8 billion renminbi worth of orders. The issue was not rated, though CDB is rated Aa3 by Moody’s Investors Service, AA- by Standard & Poor’s and A+ by Fitch Ratings.


The 20-year tranche, which followed CDB’s 15-year 2.5 billion renminbi offering earlier this year, was well received by long-tenor investors, including central banks, insurance companies and asset management companies, according to CDB executive vice-president Gao Jian (高堅). “This issuance further extends the yield curve of offshore renminbi bonds, symbolizes the establishment of a complete yield curve for the offshore renminbi bond market and provides a pricing benchmark for renminbi financial products in the international capital markets,” says Gao in a statement.


The bonds are listed on the Hong Kong stock exchange. CDB is currently the largest issuer among the Chinese financial institutions in terms of bonds issued in Hong Kong, with issuances amounting to 19 billion renminbi. It has issued a total of 6 billion renminbi of dim sum bonds this year.


About 60% of the bonds were placed in Europe, the Middle East and Africa, while the rest were sold in the Asia-Pacific. Part of the three-year bonds were placed to African central banks in the first-ever investment in renminbi bonds by the region’s central banks, according to CDB.


Bank of China (Hong Kong) acted as the sole global coordinator for the transaction, as well as joint lead managers and bookrunners for both tranches, along with Bank of Communications, Barclays, HSBC and Standard Chartered. ICBC (Asia) and Standard Bank were additional joint lead managers and bookrunners for the three-year tranche.

Conversation
Philippe Tassin
Philippe Tassin
head of asset managers & owners client lines, Asia-Pacific
BNP Paribas Securities Services
- JOINED THE EVENT -
In-person roundtable
Tech in ESG
View Highlights
Conversation
Rebecca Lim
Rebecca Lim
founding partner
Auto ML Capital
- JOINED THE EVENT -
Webinar
Unlocking the value of automation and AI in asset management
View Highlights