People’s Bank of China’s RMB 10 Billion Six-month Bills Offering In Hong Kong SAR

Linklaters advised the People’s Bank of China on this deal.

On 26 March 2020, the People’s Bank of China (PBOC) successfully issued RMB 10 billion six-month Bills in Hong Kong SAR through the tendering platform CMU BID operated by the Hong Kong Monetary Authority (HKMA), with the final interest rate of 2.19%.

This is the second successful issuance of Bills by PBOC in Hong Kong SAR this year. The total bid amount was over RMB 35 billion – 3.5 times the issuance amount.

Despite the recent volatility of the global financial market, commercial banks, central banks, funds and other institutional investors in the U.S., Europe and Asia, as well as a number of international financial institutions, actively participated in this issuance, demonstrating global investors’ confidence in RMB assets as well as the Chinese economy.

PBOC’s continuous issuance of RMB Bills in Hong Kong SAR helps further cultivate the range of high credit rating RMB investment products and RMB liquidity management tools in Hong Kong SAR, while improving the yield curve of offshore RMB, to meet the demands of offshore investors. This issuance also promotes the development and internationalisation.

Linklaters’ Head of China, William Liu (Picture), acted on the deal together with Sherry Cui.

Involved fees earner: Sherry Cui – Linklaters; William Liu – Linklaters;

Law Firms: Linklaters;

Clients: People’s Bank of China;

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Author: Michael Patrini