Investments

UOB China issues onshore Chinese yuan fund

United Overseas Bank (China) (UOB China) has issued its first onshore CNY bond.

United Overseas Bank (China) (UOB China) has issued its first onshore CNY bond, the bank announced this week.

According to a statement, the bank successfully priced its three-year onshore bond through the China Interbank Market (CIBM) and the Bond Connect scheme (BCS) on  April 13.

This is the first onshore financial bond issued by a Southeast Asian bank through the BCS.

The three-year CNY1 billion bond issue was received favourably both onshore and offshore investors, including asset managers and commercial banks, with an oversubscription rate of 2.86 times. 

The bond was priced at 4.93%, with approximately 76% placed to onshore investors and 24% to international offshore investors.

Peter Foo, President and Chief Executive Officer, UOB China, said, “This will enable us to seize more business growth opportunities as we tap the increased connectivity between China and ASEAN to support our clients’ expansion through the Belt and Road Initiative.”