China Exim Bank sets 3.4 pct rate on HK yuan bond
BEIJING, Aug 20 (Reuters) - China Export-Import Bank will sell 3 billion yuan ($438 million) of three-year bonds with a coupon rate of 3.4 percent in Hong Kong this week, a banking source said.
The bank earlier this month set an indicative coupon on the bond of 3.5 percent, subject to adjustment in light of market conditions before the sale, banking sources said at the time.
The issue marks the latest step in a state-led experiment to gradually internationalise the yuan, or renminbi.
A source familiar with the issue told Reuters that half of the issue would be sold to retail buyers and half to institutional investors.
The bank will hold a ceremony on Wednesday afternoon in Hong Kong to launch the bonds and the retail portion will go on sale from Thursday, according to the source.
He declined to be identified as he is not authorised to speak to the media ahead of the public announcement of the issue.
Ex-Im Bank was not immediately available for comment.
Beijing gave the go-ahead early last month for five banks to each issue 3 billion yuan of yuan bonds in Hong Kong.
Bank of Communications (3328.HK) sold 3 billion yuan of two-year bonds with a 3.25 percent coupon last month.
China Construction (0939.HK)(601939.SS) has hired Standard Chartered (STAN.L) to arrange a 3 billion yuan bond that is likely to be open for subscription by the end of the month, the Hong Kong Economic Journal reported on Wednesday.
Bank of China (3988.HK)(601988.SS) and China Development Bank are the other two.
Last year, Bank of China, China Development Bank and Exim Bank issued a total 10 billion yuan of renminbi bonds in Hong Kong. ($1=6.85 Yuan) (Reporting by Eadie Chen; Editing by Alan Wheatley) (eadie.chen@reuters.com; +8610 6627 1268; Reuters Messaging: eadie.chen.reuters.com@reuters.net))
