China Construction Bank to list Silk Road yuan bonds on Bursa Malaysia

23 Nov 2015

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Yang Hao, deputy chief executive of China Construction Bank (Asia) Corporation Ltd (CCB Asia) striking the gong to signify the launch of the 21st Century Maritime Silk Road bond on Bursa Malaysia. It was witnessed by Datuk Seri Nazir Razak, group chairman of CIMB Group (third from right), Tengku Datuk Seri Zafrul Aziz, group CEO of CIMB Group (second from right), Tan Sri Amirsham A. Aziz, chairman of Bursa Malaysia (right). Ren Dongyan, general manager of CCB Singapore (second left) and Lu Yang, Deputy CEO of China Construction Bank International (left).

KUALA LUMPUR: China Construction Bank (Asia) Corporation Ltd has received the go-ahead to list the world’s first ever 21st Century Maritime Silk Road bond of 1 bil yuan on Bursa Malaysia.

The notes, which will be due on in 2017, are part of the bank’s plans to support China’s “The Land & Maritime Silk Road” initiative.

The notes, priced at 4% on Nov 19, 2015 and to be issued on Nov 26, are rated “A2” by Moody’s Investors Service Pty Limited and will be dual-listed on the Stock Exchange of Hong Kong.

CIMB Investment Bank Bhd was appointed as the listing agent, joint bookrunner and joint lead manager for the bond.

The notes shall be the first China Yuan denominated bonds issued by a Chinese state-owned bank to be listed on Bursa Malaysia under the exempt regime.

China Construction Bank Corporation vice chairman, executive director and president Wang Zuji said: “As one of the key members of Asean, Malaysia has always been a target of priority for CCB as the bank expands itself into the global market.

“We are ready to join the Malaysian market with the proposed listing of the notes on Bursa Malaysia and hope that the listing will further enhance our profile in Asean region including Malaysia. This is a great milestone for CCB as part of our commitment to the development of the offshore RMB markets.”

Group chief executive of CIMB Group Tengku Datuk Seri Zafrul Aziz said CIMB was delighted to play an instrumental role in this landmark transaction.

“Our lead role reinforces our strengths in investment banking and stands testament to CIMB’s ability to draw on our people, knowledge and extensive network to serve and connect clients in the markets we operate like China. CIMB is fully committed to spearhead and facilitate this initiative in the coming days for the listing of the Notes.”

The joint bookrunners and joint lead managers for the issuance are CCB (Asia), CCB International Capital Ltd, CIMB Bank (L) Ltd and The Hongkong Shanghai Banking Corporation Ltd. The Bank of China (Hong Kong) Ltd, Bank of Communications Co., Ltd. Hong Kong branch and China Construction Bank Corporation, Singapore branch are the additional joint lead managers.

Source: The Star, 23 November 2015