ICBC's RMB bond makes historic SGX listing and clearance

First for any Chinese bank.

Singapore Exchange (SGX) welcomed the first of any Chinese Bank’s renminbi (RMB) bond to be listed and cleared in Singapore.

The RMB bond is issued by Industrial and Commercial Bank of China’s (ICBC) Singapore branch. The bond issue is settled and cleared in RMB via SGX’s Central Depository (CDP).

The bond issue is for 2 billion RMB (S$408 million) at 3.2% on a 2-year tenor, maturing on 28 November 2015. According to the book runners, Singapore investors took up 55% of the bond issue and the bonds are well distributed to more than 120 accounts.

Zhang Weiwu, General Manager of ICBC Singapore Branch, said: “ICBC’s 2 billion RMB bond in Singapore was issued out of our medium term note programme. ICBC Singapore, as one of the joint arrangers, had recently increased the programme size from US$900 million to US$4 billion as the bank continues to strengthen our RMB platform and distribution capabilities here."

Jenny Chiam, Head of Securities at SGX, said: “SGX’s commitment to grow and enhance our suite of RMB and China-related products and services shows our continuous support for our customers in their RMB business. We welcome the successful launch of ICBC bonds on SGX and look forward to greater participation from companies and investors in the RMB market via Singapore and SGX.”