HSBC China launched the two-year first floating rate Renminbi bond with a total issue size of RMB 1 billion in the Hong Kong Special Administrative Region.
The bond carries a coupon of three-month Shanghai Interbank Offered Rate (Shibor) + 38 basis points and is payable quarterly.
"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," said Vincent Cheng, Chairman of HSBC Bank (China) Company Limited.
Anita Fung, Treasurer and Head of Global Markets, Asia-Pacific of The Hongkong and Shanghai Banking Corporation Limited 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."
The Hongkong and Shanghai Banking Corporation Limited acted as the sole bookrunner for this transaction.
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