Hang Seng Bank raises RMB1 billion in Hong Kong RMB bond market debut

The bonds received positive responses from investors.

Hang Seng Bank (China) Limited's (Hang Seng China) debut offshore renminbi (RMB) bond issue has raised RMB1 billion in Hong Kong.

According to a release from Hang Seng Bank, the bonds, offered to professional investors, received a positive response from a diverse group of investors on June 25.

The pricing date of the bonds is 25 June 2014 and the maturity date is 3 July 2017, and an application has been made to list the bonds on the Hong Kong Stock Exchange.

Here's more from Hang Seng Bank:

The senior unsecured bonds carry a fixed interest rate of 3.25% per annum with a tenor of three years. HSBC acted as sole lead manager and sole bookrunner for the issue.

Mr Gordon Lam, Vice-Chairman and Chief Executive of Hang Seng China, said: “We are delighted to have received investor support for our debut offshore RMB bond issue. The net proceeds raised will be used for general financing and other corporate purposes.

We will continue to grow our business by investing in new outlets in strategic locations and other service delivery channels, leveraging on policy liberalisations and strengthening our collaboration with our parent company in Hong Kong.”