BNY Mellon combines with HKMA to help US issuers tap dim sum bonds

BNY Mellon has launched its US Withholding Tax Administration service to help US issuers tap into Hong Kong’s offshore renminbi Rmb market through dim sum bond issuances, according to a February 26 announcement.

Developed with the Central Moneymarkets Unit CMU of the Hong Kong Monetary Authority HKMA, the service is designed to allow US issuers to gain access to a wider pool of liquidity and benefit from lower funding costs in Hong Kong and mainland China while complying with US tax withholding requirements on US source income paid to foreign persons and entities.

The move could potentially drive increased issuance from US issuers, rather than mainland...