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The Agricultural Development Bank of China’s (ADBC) second offering of RMB3 billion bonds in Hong Kong this year has exceeded expectations with the total subscription amount exceeding RMB8 billion, representing approximately 2.67 times of the total issue size.
ADBC announced on June 15 that the subscription for its second offering of RMB3 billion bonds in Hong Kong this year has been successfully concluded as of this date. Subscription for the bonds exceeded expectation, and the issue received strong support from investors.
The bonds to be issued were targeted at professional institutional investors, with terms of two, three and five years and coupon rates of 2.98%, 3.20% and 3.35%, respectively.
Kong Fanbo, the general manager of Funds Planning Department of ADBC said, “ADBC has always been lending full support to and participating in the development of the offshore RMB market in Hong Kong. The new issuance helped diversify the ADBC’s financing channels in Hong Kong, enriched the investment products in the capital markets of Hong Kong, and deepened the financial cooperation between mainland China and Hong Kong as well. We also hope to establish closer relationships with financial institutions in Hong Kong and foster mutual development.”
The issue date of the RMB bonds will be 22 June 2012. Interest is payable semi-annually. The interest payment dates are 22 June and 22 December each year, beginning on 22 December 2012, with maturity dates being 22 June 2014, 22 June 2015 and 22 June 2017 respectively for each of the three tranches. If an interest payment date is not a business day in Hong Kong or Beijing, it will be postponed to the next business day, unless it would thereby fall into the next calendar month in which event it shall be brought forward to the immediately preceding business day. The bonds will be listed on The Stock Exchange of Hong Kong Limited on 25 June 2012.
The Joint Global Coordinators for this offering are Bank of China (Hong Kong) Limited and Standard Chartered Bank (Hong Kong) Limited. The Joint Bookrunners are Bank of China (Hong Kong) Limited, Standard Chartered Bank (Hong Kong) Limited, ICBC (Asia) and CCB International. The Joint Lead Managers are Bank of China (Hong Kong) Limited, Standard Chartered Bank (Hong Kong) Limited, ICBC (Asia), CCB International, Agricultural Bank of China Limited Hong Kong Branch and Bank of Communications Co., Ltd. Hong Kong Branch.
Founded in 1994, ADBC is a state-owned agricultural policy bank under the direct administration of the State Council of The People’s Republic of China. ADBC undertakes agricultural policy businesses and agriculture-related commercial businesses approved by the regulators. It plays a vital role in ensuring food safety and the maintenance of stability of the grain and cotton markets, safeguarding interests of farmers, and supporting rural reforms and development in China. ADBC received the same international credit ratings on par with China’s sovereign credit ratings.
