BEA seeks nod for mainland yuan bonds
By Maggie Zhang |
June 1, 2010, Tuesday
|
Print Edition
Print Edition
BANK of East Asia is seeking regulatory approval to issue yuan-backed bonds on the Chinese mainland.
"We're very interested to issue yuan bonds on the mainland after issuing the debt in Hong Kong," Chan Kay-cheung, vice chairman of Bank of East Asia (China) Ltd, said yesterday in Shanghai. "We're still awaiting regulators' approval."
He said the bank has already contacted the People's Bank of China, the central bank, to issue the bonds on the mainland but he declined to give more details.
Bloomberg News reported yesterday that the bank will issue up to 5 billion yuan (US$732 million) of yuan-denominated bonds on the mainland. The Industrial and Commercial Bank of China and China International Capital Corp will act as underwriters.
BEA may be the second overseas bank to sell yuan bonds on the mainland after Bank of Tokyo-Mitsubishi UFJ (China), which raised 1 billion yuan through two-year notes on May 20.
The mainland subsidiary of Bank of East Asia and HSBC sold yuan bonds in Hong Kong last year as the first overseas banks to do so.
BEA China is also confident of meeting the maximum 75 percent loan-to-deposits requirement by the end of 2011 for overseas banks, Chan said.
Domestic banks must meet the requirement now while overseas lenders enjoy a five-year grace period until the end of 2011 as China opens the market to fulfill its World Trade Organization commitment.
BEA plans to open its rural bank in Shaanxi Province in the fourth quarter of this year, joining HSBC and Standard Chartered Bank, while Citigroup has set up lending companies in rural China.
China plans to raise the number of rural banks by more than 10 times to 1,027 by 2011.
"We're very interested to issue yuan bonds on the mainland after issuing the debt in Hong Kong," Chan Kay-cheung, vice chairman of Bank of East Asia (China) Ltd, said yesterday in Shanghai. "We're still awaiting regulators' approval."
He said the bank has already contacted the People's Bank of China, the central bank, to issue the bonds on the mainland but he declined to give more details.
Bloomberg News reported yesterday that the bank will issue up to 5 billion yuan (US$732 million) of yuan-denominated bonds on the mainland. The Industrial and Commercial Bank of China and China International Capital Corp will act as underwriters.
BEA may be the second overseas bank to sell yuan bonds on the mainland after Bank of Tokyo-Mitsubishi UFJ (China), which raised 1 billion yuan through two-year notes on May 20.
The mainland subsidiary of Bank of East Asia and HSBC sold yuan bonds in Hong Kong last year as the first overseas banks to do so.
BEA China is also confident of meeting the maximum 75 percent loan-to-deposits requirement by the end of 2011 for overseas banks, Chan said.
Domestic banks must meet the requirement now while overseas lenders enjoy a five-year grace period until the end of 2011 as China opens the market to fulfill its World Trade Organization commitment.
BEA plans to open its rural bank in Shaanxi Province in the fourth quarter of this year, joining HSBC and Standard Chartered Bank, while Citigroup has set up lending companies in rural China.
China plans to raise the number of rural banks by more than 10 times to 1,027 by 2011.
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