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“Pricing these deals is painting with very broad strokes” Herman Bake, Deutsche Bank |
On January 4 the World Bank became the first issuer this year in the developing offshore renminbi bond market, with an Rmb500 million ($75.8 million) 0.95% fixed-rate note due 2013.
The deal, in the so-called dim sum market for renminbi-denominated debt in Hong Kong, was sole led by HSBC. While Anita Fung, head of global banking and markets Asia-Pacific at HSBC, described the deal as “a landmark issuance and another strong endorsement of [Hong Kong’s] evolving renminbi bond market,” investors and bookrunners are still awaiting the issuance of a benchmark-sized deal that would help establish a pricing curve.
Speaking at Euromoney’s China debt capital markets conference in Beijing on December 16, Herman Bake, head of global risk syndicate Asia at Deutsche Bank, explained the problem.
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