Update CIMB leads China Govt’s CDB Bank’s CNH1b Dim Sum bond in HK

by **Cals** Tue 01 Apr 2014, 13:55

Update CIMB leads China Govt’s CDB Bank’s CNH1b Dim Sum bond in HK

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Tuesday, 01 April 2014 13:34

KUALA LUMPUR (April 1): CIMB has acted as the Joint Global Coordinator and Joint Lead Manager for the three-year, CNH1.0 billion Dim Sum bond issued in Hong Kong by China Development Bank Corporation (CDB), said a statement by CIMB today.

The coupon rate for the bond is 3.35%, added the Malaysian banking institution.

It added CDB is a wholly-owned financial institution of the Government of China and the largest RMB bond issuer in Hong Kong.

“This transaction marks CDB’s offshore RMB (or CNH) bond issuance with predominant ASEAN investor base,” said CIMB.

(When the RMB is traded offshore, mostly in Hong Kong, its rate is referred to as CNH. This rate could be different from RMB’s rate traded in mainland China).

According to CIMB, the three-year Dim Sum bond issued from CDB’s RMB7.0 billion Debt Issuance Programme launched in November 2013 was completed on an accelerated bookbuilding process, with the order book growing in excess of CNH1.8 billion.

“The deal managed to garner strong interest from both retail and institutional investors, in particular with 76% allocation to investors from ASEAN, Korean and Japan, with a coupon rate of 3.35%,” said the bank.

“CIMB’s key role in this landmark deal is evidenced by the success of CDB achieving its primary ASEAN focus, as CDB looks to diversify its investor base from its existing North Asia investor group.

“They are the leading RMB bond market player in Hong Kong, and it is no surprise that they have now taken the lead to tap on ASEAN investors… We are pleased to have effectively leveraged our strong ASEAN network and capabilities to pull the right investors for CDB,” said Datuk Lee Kok Kwan, Chief Executive Officer, Corporate Banking, Treasury & Markets, CIMB Investment Bank.