Bank of China says it helped Korea Development Bank issue 3 bln yuan dim sum bond
In short
Bank of China said it acted as joint lead underwriter and bookrunner for a three-year, 3 billion yuan offshore renminbi bond (dim sum bond) issued by Korea Development Bank, with a coupon of 1.69%. Bank of China said the issuance was Korea Development Bank's largest offshore renminbi public bond offering to date. The bank said the deal helped the issuer lock in low-cost offshore financing and set a benchmark for cooperation between Chinese and South Korean financial institutions in the offshore renminbi bond market.
Why it matters
The deal is a cross-border issuance by a South Korean policy lender in the offshore renminbi market, a segment where Bank of China says the range of issuers is still being broadened. Bank of China framed it as a step in the wider international use of the renminbi, though the documents give no market-wide figures on offshore renminbi issuance.
Key facts
- Bank of China said it assisted Korea Development Bank in issuing a three-year, 3 billion yuan offshore renminbi bond, known as a dim sum bond, with a coupon of 1.69%. [ 1 , 3 ]
- Bank of China said it acted as joint lead underwriter and bookrunner for the issuance. [ 1 , 3 ]
- Bank of China said the offering was Korea Development Bank's largest offshore renminbi public bond issuance on record. [ 1 , 3 ]
- Bank of China said the transaction helped the issuer lock in low-cost offshore financing. [ 3 ]
- Bank of China said the deal set a new benchmark for cooperation between Chinese and South Korean financial institutions in the offshore renminbi bond market and would help diversify issuers in that market. [ 3 ]
- Yicai reported the same issuance in a brief item without additional figures. [ 2 ]
Confirmed by several sources
- Bank of China said it acted as joint lead underwriter and bookrunner for a three-year, 3 billion yuan offshore renminbi bond issued by Korea Development Bank at a 1.69% coupon. [ 1 , 3 ]
- Bank of China said the issuance was Korea Development Bank's largest offshore renminbi public bond offering. [ 1 , 3 ]
Still unclear
- The exact date of the issuance Bank of China documents say only that it took place “recently”, with no specific date, and no outlet gives one.
- Where the bond was issued, listed or sold No document names a market, exchange or city for the issuance.
- Order book size, final pricing spread and investor breakdown Only the coupon and tenor are given; no other deal metrics appear in the documents.
- Why Korea Development Bank chose the offshore renminbi market for this offering The documents describe the deal and its stated benefits but give no statement from the issuer itself.
What local media are saying
Timeline, local time
- CLS reports that Bank of China assisted Korea Development Bank in issuing a 3 billion yuan dim sum bond, which it said was the Korean lender's largest offshore renminbi public bond offering. [ 1 ]
- Yicai publishes a brief item on the same issuance. [ 2 ]
- Jiemian publishes the full details, including the 1.69% coupon, plus Bank of China's remarks on low-cost offshore financing and China-South Korea financial cooperation. [ 3 ]