China Development Bank pushes tenor in dim sum market

Chinese policy bank China Development Bank CDB established a new 15-year benchmark in the offshore renminbi bond market on Thursday night, when it priced a Rmb1.5 billion $237 million bond.

The guidance was issued at 4.2% to 4.3% and the bonds priced at the tight end at 4.2%. The bonds were issued at par. Barclays Bank and Citigroup were joint global coordinators and bookrunners. HSBC, Deutsche Bank, Standard Chartered and Royal Bank of Scotland are also joint bookrunners.

The deal represents yet another milestone in the growth of the dim sum market, which is dominated by short-tenor bonds geared towards investors who want exposure to renminbi...