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ICBC Issues RMB Bonds in South Korea
 

On October 14, 2014, ICBC (Asia), a subsidiary of ICBC, has successfully issued RMB 180 million of RMB-denominated bonds in South Korea. Underwritten by KDB Daewoo Securities,  the two-year bonds carry a coupon rate of 3.7%. Seoul Branch of ICBC was responsible for bond clearing. 

It is the first RMB-denominated bonds issued in the South Korean market by a Chinese or even an overseas enterprise, which has set a precedent for South Korea to attract overseas enterprises to issue RMB bonds in the local market, and will help shape a diversified offshore RMB bond market in the country.

During President Xi Jinping’s visit to South Korea in early July, the governments of both countries reached consensus on a series of RMB-related measures, including “encouraging Chinese enterprises to issue RMB bonds in Seoul”. ICBC (Asia)’s successful bond issue in South Korea this time was the result of ICBC Seoul Branch’s efforts that lasted for more than one month in negotiating with relevant local government departments, regulatory authorities, underwriters and securities registration institutions.

Prior to this, ICBC Seoul Branch took the lead in launching a number of innovative RMB products in South Korea, including large RMB certificates of deposit, direct RMB-KRW trading, RMB repurchase, RMB loans, RQFII custody, and RMB credit assets transfer, which has consistently boosted the dynamics of the offshore RMB market in South Korea.