HSBC China offers one billion renminbi retail bonds in Hong Kong

HSBC Bank (China), a wholly-owned subsidiary of the Hongkong and Shanghai Banking Corporation Limited, announced Monday the launch of its first retail renminbi-denominated fixed-rate bonds in Hong Kong, with the minimum issue size of one billion yuan.

The bonds will have a maturity of two years, bearing an annual interest rate of 2.6 percent which is payable semi-annually. The denomination of the bonds is 10,000 yuan. Subscription will take place from Aug. 18 to Sept. 4. As introduced by the bank, the net proceeds from the issuance of the bonds will be used for the development and expansion of HKBC China's business and for general financing purposes.

HSBC (China) Chairman Vincent Cheng said the issuance of the bonds supports the development of a representative pricing benchmark for renminbi-denominated bonds and paves the way for the internationalization of the renminbi in the future.

Hong Kong Chief Secretary for Administration Henry Tang welcomes the launch of the bonds and said renminbi business is going to add to the breadth and depth of Hong Kong's financial market and underline its strengths as an international financial center.

HSBC China launched an issue of one billion renminbi-denominated floating rate notes for institutional investors in Hong Kong earlier in June this year.

Related terms: banking, bonds, business, china, expansion, hong kong, renminbi, retail, shanghai, subscription, yuan