29 November 2012 - China Construction Bank announces the successful issuance of its first offshore CNY denominated bonds in London, which was issued by a special purpose vehicle held by China Construction Bank (London) Limited, a wholly-owned subsidiary of China Construction Bank. As a result, China Construction Bank is the first Chinese financial institution to launch offshore RMB bonds in London and list RMB bonds on the London Stock Exchange.
The three-year offshore RMB bonds of CNY 1 billion have an interest coupon of 3.2 per cent. per annum. Interest will be paid semi-annually. A group of investment banks led by CCB International, BNP Paribas, HSBC, and Industrial and Commercial Bank of China (Asia) Limited served as joint global coordinators of the bonds. The Bonds are expected to be assigned a rating of “A1” by Moody’s Investors Service Limited and a rating of “A” by Fitch Ratings Ltd. Funds raised from the bond sale will be used to support the development and expansion of the offshore RMB business of China Construction Bank (London) Limited.
China Construction Bank places great importance on the development of the London financial market and established China Construction Bank (London) Limited in 2009 to fully utilise London’s role as a global financial centre with its competitive advantages in capital, products, technology, personnel and the regulatory environment.
The Hong Kong Monetary Authority (HKMA) and the UK Treasury on 16 January 2012 announced the launch of the London-Hong Kong International RMB Forum to enhance cooperation between Hong Kong and London on the development of offshore RMB business. The City of London initiative on London as a centre for RMB business was launched on 18 April 2012 and China Construction Bank was invited to become a member of the working group in September 2012. The success of the bond issuance represents our commitment to the market as a member of the working group and will effectively promote the development of the offshore RMB market in London.
China Construction Bank is keen to support the development of the offshore RMB market in London and has actively engaged in developing this market, with cross-border RMB business a strategic focus. Through utilising the competitive advantages of its global network for RMB settlement, China Construction Bank has developed its cross-border RMB business and expanded this business to more than 120 countries and regions. Going forward, China Construction Bank will continue to be committed to internationalization of the RMB and the development of the offshore RMB market, including London.