SF Holding issues first offshore yuan dim-sum bond, raising up to 10 billion yuan, Bloomberg reports

Chinese courier SF Holding (6936) plans to raise up to 10 billion yuan (HK$11.69 billion) through its first-ever offshore yuan dim-sum bond offering, Bloomberg reported.

Following the report, its shares fell 0.88 percent at market close.

The report noted that as offshore yuan financing costs have become relatively low and the Chinese government has opened up more domestic funds to invest in offshore bonds, a growing number of issuers are flocking to the dim sum bond market. 

So far this year, dim sum bonds issued by sovereign and corporate borrowers have totaled 863 billion yuan, up 35 percent year on year — a record high for the same period.

Recent issuers also include H World, previously known as Huazhu Hotels, which issued dim sum bonds for the first time earlier this year, raising 3.35 billion yuan.

According to data compiled by Bloomberg, the investment-grade-rated company had previously relied mainly on US dollar bonds for offshore financing. If the issuance succeeds, it will mark SF Express's first return to the offshore bond market in nearly five years.

SF Express currently has a US$800 million dollar bond maturing in November.
 

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