“The trend of internationalisation of Rmb bond market remains intact” – Chin Chin Koh, UOB

Last week August 24, United Overseas Bank UOB China successfully priced a senior unsecured Rmb1 billion $146 million issuance in the China Interbank Bond Market CIBM, under the Bond Connect scheme.

The issuance marked the fourth time that the Singapore-headquartered bank had tapped the Yuan-denominated market, following its debut onshore financial issuance in 2018, its first Panda bond issuance in 2019, and a UOB China Tier 2 bond in the same year.

With a three-year tenor and a coupon rate of 2.88% equivalent to 50 bps over the corresponding China Development Bank bond reference yield, the issuance achieved the lowest ever absolute yield among...