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Standard Chartered (2888) announced on Wednesday that it supported The Ministry of Finance of the People's Republic of China (China MoF) in issuing its CNH4 billion dual-tranche offshore yuan green sovereign bond in Canada.
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The bond was issued under China’s Sovereign Green Bond Framework, with the issuance comprised 3-year and 5-year tranches, priced at 1.40 percent and 1.50 percent, respectively, Standard Chartered acted as a joint lead manager and joint bookrunner.
The bank said this issuance marks China MoF's first sovereign bond issuance in the Canadian market, the first offshore yuan green sovereign bond issuance in North America, as well as China MoF’s first-ever completion of two offshore yuan green sovereign bond issuances within the same year.
“At a time when global investors are increasingly diversifying their asset allocation strategies, the transaction sends a clear signal of China's continued financial opening-up and steady progress in advancing yuan internationalization,” said Jerry Zhang, global head of RMB commercialisation and banks and broker dealers at Standard Chartered.
Since the official announcement on November 5, the issuance has drawn 54.04 billion yuan subscriptions, representing an oversubscription of 13.5 times the issue size.
Zhang said the strong investor demand reflects international investors' confidence in China's sovereign credit profile and their firm conviction in the long-term investment value of yuan-denominated assets.
“Notably, alongside strong participation from North American investors, the transaction also welcomed new SSA-type investors (Sovereigns, Supranationals and Agencies) to China MoF's offshore CNH bond investor base, marking a meaningful expansion of its global investor base and further enhancing the international reach of the offshore RMB market.
