The Asian Development Bank has thrown its weight behind Hong Kong’s fledgling renminbi-denominated bond market, raising Rmb1.2bn ($181m) in the first deal of its kind by a supranational agency.
The landmark bond, which matures in 2020 and carries a triple A credit rating, is the longest-dated and highest-rated bond denominated in the Chinese currency to have been sold to international investors.
ADB has also applied to list the bonds on the Hong Kong stock exchange, which would make them the first renminbi-denominated securities to be traded and settled on the bourse. Bindu Lohani, vice- president of finance at ADB, said: “This bond will act as a useful benchmark for other potential borrowers, helping develop the offshore renminbi bond market into an important source of funding for borrowers as well as an investment destination.”