Singapore branch of BOC issues $843m in 3-year bonds

The Singapore branch of the Bank of China (BOC) has issued US$600 million (S$843 million) in three-year bonds. The bonds have a coupon rate - or rate of return - of 0.77 per cent plus the current three-month London Interbank Offered Rate.

This marks the second issuance by the bank this year to support projects under China's One Belt, One Road initiative, following a US$3 billion issuance last month by five BOC branches in collaboration.

DBS Bank, the manager and bookrunner of the issuance yesterday, hopes to see more institutions make use of Singapore's status as an infrastructure financing hub.

DBS' fixed income head Clifford Lee told The Straits Times: "We hope to see more issuers raise international capital in Singapore for infrastructure projects, especially since the Monetary Authority of Singapore has made it even more attractive for issuers to issue bonds here, with the launch of the Asian Bond Grant and the Green Bond Grant."

Wong Wei Han

A version of this article appeared in the print edition of The Straits Times on May 06, 2017, with the headline 'S'pore branch of BOC issues $843m in 3-year bonds'. Print Edition | Subscribe