Russia’s second biggest bank will become the first emerging market issuer of “dim sum” bonds denominated in renminbi, in a sign of China’s growing presence in financial markets.
VTB Bank plans to issue Rmb1bn in three-year bonds, expected to yield about 3.125 per cent, according to people familiar with the situation.
Only two foreign companies, McDonald’s in August and Caterpillar last month, have issued “dim sum” bonds, which are issued in Hong Kong, where the offshore market is developing.
The recent issues follow the opening up of regulations by the Chinese authorities earlier this year.
“China is the future. More and more companies and banks recognise the importance of China. It is the fastest-growing economy in the world and a lot of companies want to do business there, which means they need the currency,” said Nigel Rendell, senior emerging market strategist at RBC Capital Markets.
“中国是未来所在。越来越多的企业和银行认识到中国的重要性。中国是全球增长最快的经济体，很多公司都希望在华开展业务，这意味着它们需要人民币。”加拿大皇家银行资本市场(RBC Capital Markets)新兴市场高级策略师奈吉尔•兰德尔(Nigel Rendell)表示。
Separately, Galaxy Entertainment Group, a casino operator listed in Hong Kong, was able to sell bonds at yields lower than in Shanghai and below those on gaming debt in the US because of strong demand, another sign of the Hong Kong market’s potential.
另外，在香港上市的博彩运营商银河娱乐集团(Galaxy Entertainment Group)所发行的人民币债券，由于需求旺盛，利率低于上海和美国两地，这再次突显出香港市场的潜力。
Galaxy, which is building a 2,200-room complex in Macau with the world’s largest roof-top wave pool, sold Rmb1.38bn of three-year bonds on Thursday priced to yield 4.625 per cent.
Since February, it has become possible for any company in the world to tap the “dim sum” market. But issuers still need to gain approval from Beijing to move the proceeds from Hong Kong to the mainland.
Some banks have been issuing these “dim sum” bonds since 2007. There have been about 20 so far, as issuance was initially restricted to Chinese financial institutions.
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