HSBC China joined the underwriting group for Renminbi-denominated bonds that have been issued by Bank of Shanghai. It marks the first time a locally incorporated foreign bank has participated in the underwriting of a RMB financial bond in China.
The RMB 5 billion or US$732 million total issuance includes a RMB 2 billion or US$292.9 million three-year fixed-rate tranche set at 3.65 percent and a RMB 3 billion or US$439 million five-year floating-rate tranche set at 92 basis points above the People's Bank of China one-year deposit rate.
"We are very pleased to be the first foreign bank to participate in the underwriting for bond issuance of a Chinese financial institution. This marks a new milestone in building China's capital markets where HSBC is keen to play an active part," said Richard Yorke, President and Chief Executive Officer at HSBC China.
David Liao, Managing Director, Head of Global Markets at HSBC China, said: "We are excited to be able to work with leading local institutions to participate in the underwriting of financial bonds. There is tremendous growth potential in China's debt capital market and we will endeavour to be a contributing member of the underwriting community."
HSBC has an 8 percent stake in Bank of Shanghai.
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