Bank Of China Launched A Global Financing Plan For The Financial Artery Around The World

The "one belt and one road" financial artery project starts in the bank's first four currency offshore debt exceeding US $3 billion.

With China "

With the advance of strategic planning, the Bank of China took the lead in raising funds for issuing bonds.

According to the sales documents obtained by the twenty-first Century economic report, the Bank of China plans to issue four currencies overseas, including offshore renminbi, euro, Singapore dollar and US dollar medium term notes.

According to sources, the bond was last week's global roadshow, and the proceeds from the issue will be deposited in various branches of the Bank of China, mainly for the financing of the "one belt and one road" project.

First four currency bonds

Sales documents show that the bonds include three year, five year and 10 year dollar bonds, and the guiding rate is 140 basis points, 150 basis points and 180 base points for the US Treasury bonds in the same period. The interest rate of offshore RMB two-year bonds is about 3.75%, while the four year Singapore dollar bond rate is about 3%.

According to the sources, Bank of China will decide whether to issue additional Euro bonds on the basis of investor interest. "But the scale of financing has not yet been determined. Each currency bond is currently on a benchmark scale. The market estimates that the overall circulation may be at least 3 billion dollars, or even 6 billion -70 billion yuan."

Bond sales documents show that the US dollar bonds are issued by the Bank of China branch of Hongkong, and the offshore renminbi and Singapore dollar bonds are issued by its Abu Dhabi and Singapore branches respectively. The proceeds from the bonds will be used for "General operating purposes of the company".

At the same time, according to the bond prospectus, the issuance of the bond is part of the plan of the bank to provide us $20 billion in credit funds for the "one belt related project" this year.

The US dollar, the euro, the Singapore dollar and the renminbi are the main currencies of the Bank of China. The US dollar and the euro are often used in international pactions, especially the euro. The interest rate is very low. Therefore, many international institutions are issuing the euro debt abroad.

Although Singapore's economy is not very large, Singapore dollar's bond market is still a very active market.

Bank of China issued the four currency bonds in order to meet the needs of different investors. Taking into account the use of funds, the cost of issuing bonds and the diversification of investors, the debt issuance plan is more flexible and can be allocated in different currencies and years.

Barclays, Citigroup, DBS and HSBC will be the leading underwriters of the Bank of China (Citigroup).

Morgan chase, Goldman Sachs, Standard Chartered, First Gulf Bank and others are bookkeeping banks in the issuance of all kinds of currency bonds.

In addition, Tian Guoli, chairman of the Bank of China, said in March that bank of China will strive to become a financial artery of "one belt and one road". This year, the bank plans to provide a loan credit line of not less than 20 billion US dollars for the "one belt and one road" country, which will reach US $100 billion in the next three years.

Offshore bond issuance heating up

Offshore renminbi

After a brief cold spell at the beginning of the year, the temperature has obviously increased in recent months.

With the accelerated pace of RMB internationalization, the interest of overseas governments and institutions in issuing RMB bonds has also increased significantly.

After the British government issued the first sovereign debt in October last year, Mongolia also plans to issue RMB sovereign debt.

According to public information, Mongolia is currently conducting a roadshow in the market for three year RMB bonds, with a final coupon rate of 7.5%, slightly higher than 7% of its initial guidance price.

Meanwhile, MITSUBISHI Bank of Japan plans to issue 350 million yuan 2 yuan RMB bonds for domestic institutional investors in Tokyo, and is expected to become the first entity to issue RMB bonds in Japan.

In the first quarter of last year, the issuance of Renminbi bonds flourished, as many Real Estate Company predicted that the market would not be very good in 2015, and they would be active in issuing bonds to supplement their liquidity.

But in the first quarter of this year, on the one hand, domestic interest rates declined. Many domestic institutions saw that domestic bond issuance rates were lower than those issued abroad, so considering their cost, they had less incentive to issue overseas bonds.

At the same time, in the first quarter of this year, real estate enterprises such as the impact of Jia Zhao storm, leading to some investors will have some concerns about Real Estate Company, market sentiment is not very good, in terms of pricing difficulties, resulting in the first quarter of this year, the issuance of debt reduction.

According to the data obtained by Dealogic from this reporter, so far this year, Chinese Enterprises

A total of 16 pens, the total issue amount of $2 billion 566 million, compared to the same period in 2013 issued 15, the total amount of $3 billion 830 million, compared to the same period last year, up to 58, the issue amount of $15 billion.

In addition, the currency of overseas bonds issued by Chinese funded institutions has diversified patterns. So far this year, 1 Australian dollar bonds have been issued, amounting to 1 billion 97 million US dollars; 10 Single Euro bonds, amounting to 7 billion 206 million US dollars; HK $and Singapore dollar bonds are 6 and 4 respectively, with a cumulative sum of 704 million US dollars and 546 million dollars.

In contrast, US dollar bonds are still dominant, with a total of 67 issued so far this year, amounting to US $49 billion 900 million.

Neeraj Seth, head of Asian Credit division, said in a press conference on June 24th that the company has increased its holdings of Chinese bonds this year, slightly more than the beginning of the year, and is one of the regions with the largest share of investment. "We expect China to further reduce borrowing costs and stabilize property prices mainly because of the vigorous anti-corruption campaign against corruption, debt control and economic slowdown," BlackRock said.

At the same time, he revealed that at present, BlackRock holds China's financial debt, including bills and securities backed by bank guarantee letters of credit.

After the weakening of residential sales in China and the emergence of some corporate governance emergencies in the group, the company is more inclined to invest in high-quality investment grade real estate bonds.