HSBC China to issue 1 bn yuan floating-rate dim sum bond: sources
The initial price guidance of the senior unsecured bond is fixed at three-month Shanghai Interbank Offered Rate (SHIBOR)-45 bps (basis points), the sources said.
"The books opened this morning and the bond will be priced as early as today," one of the sources said, "So far the feedback is quite positive from investors."
HSBC (China) is rated A2 by Moody's and the dim sum bond will not be rated. The coupons will be paid quarterly on Jan. 10, Apr. 10, July 10 and Oct. 10 of each year. The offshore yuan bond market has been developing rapidly since the first dim sum bond was issued in July, 2007.
Total issuance volume in 2012 registered at 148.5 billion yuan, according to Thomson Reuters statistics. Floating-rate dim sum bonds are rare in the market since a mature offshore benchmark yield curve is still in the making and fixed rates are easier to be accepted by investors in the nascent market.
Before this floating-rate bond, HSBC (China) sold a 1 billion yuan two-year dim sum bond priced at SHIBOR+38bps in June 2009.
China Development Bank, one of the country's three policy banks, also issued two floating-rate dim sum bonds in 2009 and 2010, in a bid to accelerate the development of the market with new products.
HSBC is the sole global coordinator for
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