CDB Issues Offshore RMB Bonds of 6.5 Billion Yuan

On November 19, 2020, CDB issued offshore RMB bonds of 6.5 billion yuan on the international market, which is by far the largest higher-rated bond issuance via the book building method on the offshore RMB bonds market. The three-year offshore RMB bonds totaling 2.8 billion yuan were issued at a rate of 3.03%, and the five-year offshore RMB bonds totaling 3.7 billion yuan were issued at a rate of 3.23%. This issuance is based on single debt rating S&P A+.

This is reported to be the first issuance of offshore RMB bonds by CDB on the offshore RMB bonds market since 2014. The issuance has attracted sovereign investors from major countries and regions in Asia, the Middle East, Europe and the United States, as well as many high-quality investors such as banks, funds and asset management companies, demonstrating the confidence of the international community in the steady and sound development of China’s economy.

The joint underwriters and joint bookrunners of this issuance are Bank of China, HSBC, Mizuho Securities, DBS Bank, Agricultural Bank of China, China Construction Bank, Bank of Communications, Bank of East Asia, Standard Chartered Bank, and ICBC (Asia).

According to CDB’s Treasury & Financial Markets Department, CDB has issued offshore RMB bonds of 34.5 billion yuan since its first issuance of such bonds in 2007. By doing so, CDB has provided quality RMB investment products for overseas investors, advanced the construction of an international circulation of RMB and facilitated RMB internationalization. Looking ahead, CDB will continue issuing offshore RMB bonds, constantly improve yield curves of these bonds and offer more high-yield investment products to overseas investors.