SCB offers renminbi to Phl, Asian business

SINGAPORE – Standard Chartered PLC has raised one billion Chinese yuan (renminbi) through a Singapore-listed offshore renminbi bond. 

The three-year senior unsecured issuance priced with a coupon of 2.625 percent after generating over three billion yuan in orders from 75 investors across Asia. 

With settlement of the bond in end May, this will be the first offshore yuan bond that is listed, cleared and settled in Singapore. 

The bond will be listed on the Singapore Exchange (SGX-ST) cleared via The Central Depository (Pte) Limited and settled through ICBC Singapore. 

Standard Chartered Bank group head of Financial Markets Lenny Feder said that the landmark RMB issuance out of Singapore closed with very positive support from investors. 

Feder said that the orderbook was three times subscribed with significant demand from some of the largest institutional investors in the region. The strong partnership with the Singapore regulators allowed the bank to launch the deal very swiftly and successfully open this important market. 

“In the wake of this deal, we anticipate increased interest in similar transactions from Asian companies, given the greater ease of access to and familiarity with a Singapore-based clearing and settlement system. Our capabilities and rich experience in RMB solutions allow Standard Chartered to continue supporting our clients in their RMB business,” he added. 

Singapore Exchange chief executive officer Magnus Bocker said that as Singapore’s role as an international offshore RMB center becomes increasingly important, customers coming to Singapore Exchange can be assured of its commitment to keep growing and enhancing its suite of RMB and China-related products and services.