HSBC Bank (China) has launched the first floating rate Renminbi bond to the institutional investors in the Hong Kong Special Administrative Region.
The two-year RMB floating rate bond has a total issue size of RMB 1 billion and carries a coupon of three-month Shanghai Interbank Offered Rate (Shibor), plus 38 basis points and is payable quarterly. The Hongkong and Shanghai Banking Corporation acted as the sole book-runner for this transaction.
Vincent Cheng, Chairman, HSBC Bank (China), said: “While HSBC China is extremely liquid and strongly capitalised, through this bond issue we seek to support the development of Hong Kong’s RMB market and to help establish a representative pricing benchmark.”
Anita Fung, Treasurer and Head of Global Markets, Asia-Pacific, HSBC, said: “We are delighted to see the first RMB floating rate bond offered in Hong Kong. It is important for us to be able to introduce new products to the market that provide market participants with new tools and vehicles to manage their portfolio risk.”
