Tuesday 15 October 2013

ICBC bond: latest step on London’s road to RMB dominance | beyondbrics

ICBC bond: latest step on London’s road to RMB dominance | beyondbrics:

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So, ICBC is to become China’s first mainland bank to issue an offshore renminbi bond in London. The launch, which should take place next month, is a further milestone in the development of the renminbi as an international currency, and demonstrates London’s growing role as the European time zone centre for renminbi trading.

The dim sum bond market, which refers to renminbi-denominated bond issues outside the mainland, began and flourished in Hong Kong, which remains the home of the vast majority of offshore issuance. However, in April 2012, HSBC issued the first London-listed dim sum bond, raising Rmb2bn ($328m), 60 per cent of it placed into Europe. Several other London issues have followed, from issuers as diverse as Banco de Brasil and Australia’s ANZ."

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