Transaction marks China Development Bank’s offshore RMB bond issuance with predominant ASEAN investor base

Kuala Lumpur: CIMB acted as the Joint Global Coordinator and Joint Lead Manager for the CNH1.0 billion Dim Sum bond issued in Hong Kong by China Development Bank Corporation (“CDBâ€), a wholly-owned policy-based financial institution of the Government of China and the largest RMB bond issuer in Hong Kong.

The 3-year Dim Sum bond issued from CDB’s RMB7.0 billion Debt Issuance Programme launched in November 2013 was completed on an accelerated bookbuilding process, with the order book grew in excess of CNH1.8 billion. The deal managed to garner strong interest from both retail and institutional investors, in particular with 76% allocation to investors from ASEAN, Korean and Japan, with a coupon rate of 3.35%.

“CIMB’s key role in this landmark deal is evidenced by the success of CDB achieving its primary ASEAN focus, as CDB looks to diversify its investor base from its existing North Asia investor group. They are the leading RMB bond market player in Hong Kong, and it is no surprise that they have now taken the lead to tap on ASEAN investors. Having said that, we are pleased to have effectively leveraged our strong ASEAN network and capabilities to pull the right investors for CDB,†said Dato’ Lee Kok Kwan, Chief Executive Officer, Corporate Banking, Treasury & Markets, CIMB Investment Bank.

“It is a classic deal that draws on our unique understanding of Asia and ASEAN in particular, coupled with our Asia-Pacific investment banking capabilities, to demonstrate our ability in intermediating intra-Asian deals. The synergies and strengths of CIMB Group’s investment and universal banking platform across the region evidently gave us the competitive edge to serve our client who was looking to tap into the ASEAN market,†he added.


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