ICBC sells 4b yuan bonds in largest such issuance here

SINGAPORE — Industrial and Commercial Bank of China today (Sept 16) issued 4 billion yuan (S$821 million) worth of offshore bonds in Singapore in the largest issuance here of debt denominated in the Chinese currency.

The Lion City bonds come in three tranches - a two-year bond worth 2 billion yuan at 3.5 per cent; a five-year bond worth 700 million yuan at 3.7 per cent; and a seven-year bond worth 1.3 billion yuan at 3.95 per cent. These bonds will be cleared through the Central Depository in Singapore.

The five-year and seven-year tranches will be listed on both the Singapore Exchange and Taiwan’s GreTai Securities Market - the first dual listing by a Chinese bank. ICBC said the bonds enjoyed strong demand from investors in Asia and Europe, with orders exceeding 7.3 billion yuan across the three tranches.

ICBC said the issuance in Singapore underscored its continued commitment to the development of the offshore yuan markets. Singapore overtook London in July to become the largest yuan centre outside Hong Kong.

Taiwan, in response to increased competition for a slice on the yuan pie, has loosened regulations to boost its own bond markets for the Chinese currency. ICBC said the latest yuan bond issuance and listings will bridge two of the largest offshore yuan centres and pave the way for further internationalisation of the Chinese currency. CHANNEL NEWSASIA