UOB (China) prices 3-year onshore Chinese yuan bond at 4.93%

The bond saw strong demand from both onshore and offshore investors, including asset managers and commercial banks, said UOB.
The bond saw strong demand from both onshore and offshore investors, including asset managers and commercial banks, said UOB.PHOTO: REUTERS

SINGAPORE - United Overseas Bank (China) has priced its three-year onshore Chinese yuan financial bond on April 13 through the China Interbank Market (CIBM), with the one billion yuan (S$208.6 million) offering seeing an oversubscription rate of 2.86 times.

This was the first onshore financial bond issue by a South-east Asian bank through the Bond Connect scheme, which gives overseas investors access to the Chinese bond market.

The bond saw strong demand from both onshore and offshore investors, including asset managers and commercial banks, said UOB in a press statement on Wednesday (April 18).

It was priced at 4.93 per cent, with about 76 per cent of the bond placed to onshore investors and 24 per cent to international offshore investors.

Said Peter Foo, president and chief executive officer of UOB (China): "The continued liberalisation of China's financial market and internationalisation of the renminbi, coupled with growing demand in the CIBM, present opportunities for UOB (China) to seek new financing sources and to diversify our funding mix.

"This will enable us to seize more business growth opportunities as we tap the increased connectivity between China and Asean to support our clients' expansion through the Belt and Road Initiative."

China Securities, Industrial and Commercial Bank of China, Bank of China, Bank of Communications and Standard Chartered Bank (China) were mandated as lead underwriters of the offering.