Dim sum bond
Dim sum bonds are
Chinese renminbi, rather than the local currency. They are named after dim sum, a popular style of cuisine in southern China.[1]
History and use
The first dim sum bond was issued by the
ANZ, HSBC and Banco do Brasil
earlier in the year.
35.7 billion yuan in dim sum bonds were issued in 2010 and 131 billion in 2011.[4]
The first foreign-issued dim sum bond by a nonfinancial company was announced on August 19, 2010 and issued on September 16, 2010 by McDonald's.[1] On 5 November 2013, British Columbia finance minister Mike de Jong reported a successful placement of Chinese RMB$2.5bn in dim sum bonds, listed January 14, 2014 on the Luxembourg Stock Exchange.[5] The issue was five times oversubscribed.
Some Indian companies participate in the dim sum bond market, one of them being IL & FS Transportation networks (a subsidiary of the giant lender
IL & FS Financial Services).[6]
See also
- Foreign currency denominated bond
- Panda bond
- Kungfu bond
- Eurobond
- Schengen bond
Sources
- ^ a b c Fion Li (15 November 2011). "'Dim sum bonds' are fueling China's currency rise". The Washington Post.
- ^ "CDB to issue 5 bln yuan RMB bond in HK". gov.cn. Archived from the original on 5 July 2008. Retrieved 10 October 2013.
- ^ Michael Schuman (15 February 2011). "Is the Chinese yuan becoming a rival to the dollar?". Time.
- ^ "Bank of China Beats HSBC as Dim Sum Market Opened: China Credit". Bloomberg Businessweek. 26 October 2011. Archived from the original on October 28, 2011.
- ^ Wang Liwei (5 November 2013). "Canadian Province Issues Offshore Yuan-Denominated Bonds". Caixin Online.
- ^ Wee, Denise (27 September 2018). "IL&FS Jumps by Record in Dim Sum Bond Market on Hope of Support". Bloomberg Quint. Retrieved 29 September 2018.