BEA China received approval from the People’s Bank of China in December 2010 to issue the bonds worth up to RMB5bn in Mainland China’s interbank bond market.
The bonds will be organized and underwritten by the Joint lead managers, namely the Industrial and Commercial Bank of China, China International Capital Corporation (CICC), UBS Securities Company, and the Bank of Communications Company. CICC will also act as the Bookrunner.
According to BEA, the bonds will bear interest starting from 21 March, 2011, with a term of two years and mature on 21 March, 2013. The Bonds will be issued to institutional investors only.
They will be fixed rate bonds, and the interest rate has yet to be determined.
BEA said the proceeds raised from the offering will be primarily used to support BEA China’s business development and expansion activities.
China Cheng Xin International Credit Rating Company has rated the Bonds "AAA".
In July 2009, BEA China became the first mainland-incorporated foreign bank to issue RMB retail bonds in Hong Kong. The issue was well received by both retail and institutional investors with a total application amount of approximately RMB6.3bn.
BEA China raised RMB4 billion through the issue.
