The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

China: Two steps towards internationalized renminbi

Hopewell, Citic Bank issue in Hong Kong; Interbank market, investment products launched

Two issuers took advantage of Beijing’s continuing drive to internationalize the renminbi, using the looser restrictions on offshore issuance to complete debt deals in Hong Kong last month.

Hopewell Highway Infrastructure became the first non-mainland-domiciled corporate to issue renminbi-denominated bonds outside the People’s Republic when it raised Rmb1.38 billion ($203 million) in two-year notes, with Bank of China acting as sole bookrunner. The company, a Hong Kong-based toll road operator, will use the funds to help finance the construction of an expressway in China’s Pearl River delta region.

The other deal involved Citic Bank International (CBI), the Hong Kong subsidiary of China Citic Bank, issuing the first-ever offshore renminbi certificate of deposit in the form of a $500 million one-year note with a coupon of 2.68%. HSBC acted as sole bookrunner of the deal. Woody Chan, treasurer of CBI, said in a statement that the funds would "enhance [CBI’s] working capital for trade finance and optimize [our] Rmb asset and liability position".

"The deposit base for renminbi in Hong Kong stands at around Rmb85 billion now, and could reach Rmb100 billion by the end of the year"

Gina Tang, HSBC

The deals are further milestones on the path towards internationalization of the renminbi via the development of viable offshore bond markets in the currency.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree