OREANDA-NEWS. January 6, 2012. China Development Bank will be the first mainland-based financial institution to make use of the Hong Kong Monetary Authority (HKMA)’s bond-tendering platform, as the bank signed the user agreement for HKMA’s Central Moneymarkets Unit (CMU) BID services today. The move marks CDB’s further diversification of channels to sell renminbi-denominated bonds in Hong Kong.

CDB is allowed to issue bonds CNY 6 billion worth in Hong Kong, a limit valid for one year from the date of approval in 2011. As a quasi-sovereign rating bonds-issuer, CDB remains a pioneering and innovative force in developing China’s bond market and now a major player in the offshore market in Hong Kong. It offered China’s first dim sum bonds in Hong Kong in 2007, where CNY13 billion worth has been raised to date. CDB plans to issue the upcoming tranche in 2012 through HKMA’s CMU BID and through book-building process.

At the signing ceremony between CDB and HKMA today, GAO Jian, Vice President of CDB, said that with support and guidance from the Beijing and Hong Kong regulators, CDB was able to capitalize on its position as a bond issuing bank and was largely involved in building Hong Kong as an offshore renminbi center. While crediting the bank’s accomplishment to its commitment to strengthening financial cooperation between the mainland and Hong Kong, Gao highlighted CDB’s successes in leading the innovation of the bond market and capital markets in China:

Leading bond issuer--first to issue yuan bonds in Hong Kong;

Active dealer--first to engage in cross-border yuan bond investment;

Biggest offshore lender--first to lend big-ticket loans overseas in yuan.

Going forward, CDB pledges to continue to lead the market with admirable performance and innovation, Gao added.