* CDB bond to have 3-4 tranches
* Two-year tenor to carry a floating rate
HONG KONG, Nov 5 China Development Bank
will return to the offshore yuan debt market and start
selling at least 3 billion yuan ($492 million) in bonds on
Wednesday, two sources with direct knowledge of the deal said.
The bonds by the state-owned policy bank will be part of a
fresh batch of quotas granted by the National Development and
Reform Commission (NDRC) to mainland issuers to tap the dim sum
market. The pipeline may be as strong as 75 billion yuan of
The China Development Bank (CDB) bond will comprise at least
three tranches, namely 2-year, 5-year and 10-year tenors. An
extra tranche of 30-year tenor is also being considered with the
aim of extending the benchmark curve in the dim sum market.
"The announcement will come out quite soon and roadshows
will begin tomorrow," one of the sources told Reuters on
The bank hopes to make the 2-year tenor tranche a
floating-rate note with reference to a newly-launched CNH Hibor
rate in the former British colony, while the rest of the tenors
will carry fixed rates, the sources said.
Germany's Landeskreditbank Baden-Württemberg-Förderbank
(L-Bank) last week sold the first yuan floating-rate debt in
Hong Kong since the CNH Hibor was created in June.
CDB is no stranger to the burgeoning offshore yuan bond
market, as it issued Hong Kong's first dim sum bond, in July