Sales of offshore yuan-denominated bonds hit 79 billion yuan (US$12.8 billion) in the first five months, equivalent to 92 percent of all issuances last year, 21st Century Business Herald reported Wednesday, citing data from Dealogic.
Financial institutions had the lion’s share of the so-called dim sum bonds with sales of 29.1 billion yuan, accounting for 37 percent of the total.
China’s biggest state-owned lenders — Industrial & Commercial Bank of China, Bank of China, China Construction Bank and Agricultural Bank of China — were among the most active issuers.
Construction Bank sold 300 million Swiss francs worth of dim sum bonds in Switzerland at the end of April with a coupon rate of 1.375 percent while Agricultural Bank and Bank of China issued a combined of 2.7 billion yuan of such bonds in Germany and Luxembourg, both of which were oversubscribed.
Lower financing costs in Europe and strong demand from institutional investors for renminbi assets drove sales by state-run lenders, the report said.
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