World Bank launches debut dim sum

World Bank launches debut dim sum

A new year and a new landmark on the renminbi’s road to internationalisation. In the highest profile offshore yuan bond to date, the World Bank issued a Rmb500 million ($76 million) dim sum bond in Hong Kong this Wednesday.

The two year issue carried the lowest coupon so far at 0.95% and was lead managed by HSBC. Dim sums are the nickname for yuan-denominated bonds issued in Hong Kong that seek to tap the territory’s offshore renminbi deposit base. The market has taken off in the past few months with McDonald’s and Caterpillar issuing earlier bonds.

Reuters says the timing is no coincidence, with China set to up it shareholding in the World Bank as its third largest stakeholder.

© ChinTell Ltd. All rights reserved.

Sponsored by HSBC.

The Week in China website and the weekly magazine publications are owned and maintained by ChinTell Limited, Hong Kong. Neither HSBC nor any member of the HSBC group of companies ("HSBC") endorses the contents and/or is involved in selecting, creating or editing the contents of the Week in China website or the Week in China magazine. The views expressed in these publications are solely the views of ChinTell Limited and do not necessarily reflect the views or investment ideas of HSBC. No responsibility will therefore be assumed by HSBC for the contents of these publications or for the errors or omissions therein.