The FINANCIAL — Industrial and Commercial Bank of China’s London branch has launched its first international bond, raising $300 million on London Stock Exchange as part of a $10 billion MTN programme. The three year bond is the first dollar denominated issue by a Mainland Chinese bank on London Stock Exchange’s Main Market.
London Stock Exchange has a strong track record of supporting Chinese equity and debt issuance on its markets. 46 Chinese companies are quoted in London. In addition, there are 37 so-called dim sum bonds listed on London Stock Exchange’s markets, with an outstanding amount of CNY 23.5 billion (£2.4 billion) and 7 RQFII ETFs, including the first ETF in Europe denominated in RMB. Total value traded on exchange for 2015 for the 7 RQFII ETFs year to date is £1.8 billion across 11,000 trades, according to London Stock Exchange.
Nikhil Rathi, CEO, London Stock Exchange plc & Director of International Development, LSEG said:
“London is the world’s most international financial market and the obvious destination for the London branch of ICBC to launch its first dollar denominated bond. This landmark listing is part of an exciting and extensive $10 billion medium term note programme being undertaken by the bank and the decision to issue this initial bond on London Stock Exchange demonstrates the UK’s position as the leading gateway for leading Chinese firms looking to access global capital in the full range of currencies.”
Madam Jin Chen, General Manager, Industrial and Commercial Bank of China Limited, London Branch said:
“We are proud to have listed our MTN programme on London Stock Exchange’s Main Market; this is a first not only for the ICBC Group but also for a Mainland Chinese bank emphasizing the UK’s importance to our global strategy. This has been evidenced by the establishment of ICBC London branch in 2014 and the growing economic ties between the UK and China. The success of our debut issue shows that despite increasingly difficult market conditions the ICBC name and credit story continues to be well supported in the market.”