Related News

Home » Business » Finance

BEA issues yuan bonds in HK

THE BANK of East Asia (China) has obtained regulatory approval for a quota to issue up to 4 billion yuan (US$586 million) of yuan-backed bonds in Hong Kong, senior executives said yesterday in Shanghai.

The bank is the first Chinese mainland-incorporated overseas lender to issue yuan bonds in Hong Kong to both individual and institutional investors.

BEA started issuing the first batch of bonds worth at least 1 billion yuan in Hong Kong yesterday and the offer will run until July 17. The two-year bond bears an annual interest of 2.8 percent.

"The bonds offer another stable source of capital and makes our capital channel more diversified," said T.C. Kwan, executive director and CEO of BEA China, yesterday in Shanghai.

The Hong Kong-based BEA got special approval from the State Council to issue the yuan bonds in Hong Kong. It also obtained the go-ahead from the People's Bank of China to issue the bonds.

"The Hong Kong bonds issue is the first step. We are also considering issuing yuan bonds in the mainland's interbank market in the future," Kwan said.

The bank set up its Shanghai-headquartered subsidiary, the Bank of East Asia China, in April 2007 as one of the first four overseas banks to be locally incorporated.

Last month, HSBC issued a 1-billion-yuan, 2-year floating rate note at a spread of 28 basis points over the Shanghai interbank offered rate.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend