**First off shore RMB bond for a Middle East issuer**
**ENBD accesses Asian investors**
HSBC has issued the first off shore RMB bond for a Middle Eastern Issuer; with the launch of Emirates NBD's ('ENBD') debut three year, CNH $1bn (US$158) bond. This issuance adds to HSBC's list of RMB firsts: including launching the first - and only - RMB bond out of India (IDBI Bank RMB650m)
RMB off shore bonds are effectively structured to allow issuers to borrow directly in CNH Renminbi - the off shore Chinese currency. These bonds help issuers broadening the spread of investors they borrow from - tapping the important Asian market - and allow Asian investors to buy bonds in their own currency.
Abdulfattah Sharaf, CEO of the UAE, HSBC said: "We feel that this deal has significance for the MENA region. Issuances like this from strong regional names really help establish the UAE as a financing centre amongst Asian investors. As the economic centre of the world continues to shift towards the East, it's more important than ever that the Middle East seizes the opportunity to connect with fast growing Asian economies, above and beyond its traditional role as the provider of energy resources."
"With this issuance, ENBD has effectively diversified its buyer base targeting Hong Kong and China based investors who had never bought an ENBD issuance before."
"The Bond was heavily oversubscribed which allowed HSBC to increase the size from an initial CNH $750m to CNH $1bn by issuing a 'tap' - issuing a second time to satisfy investor demand. This is typically only done when investors have shown extremely strong interest - which is another positive for the future."
HSBC RMB facts
No.1 in Dim Sum bonds in 2011 - lead managed RMB32.9bn with 21.7% market share (ahead of No.2 at 12.5%) (Bloomberg).
Most comprehensive Dim Sum bond platform by issuer type, issuer country and issuance tenor
Broadest range of issuers - sovereigns, financial institutions and corporates from various sectors
Demonstrated depth and diversity by delivering multiple firsts:
- 1st to launch US SEC registered dim sum bond for America Movil in Feb12.
- 1st to launch offshore RMB bonds for a High-yield Issuer (Galaxy RMB1.38bn)
- 1st to launch offshore RMB bonds for a European Corporate (Unilever RMB300m)
- 1st to launch a RMB bond in 2011 and from the World Bank (sole bookrunner)
- 1st triple tranche deal priced in a single day; 1st foreign non-Asian issuer (Bosch und Siemens Hausgeräte RMB2bn)
- 1st China SOE; highest-rated corporate from China (CNPC RMB3bn)
- 1st subordinated bank capital instrument in CNH; Basel III - Compliant Tier 2 Notes (ICBC RMB1.5bn)
- Participated in largest ever offshore RMB bond deal by sovereign issuer; HSBC as only non-Chinese bank mandated by MoF in a lead role (for the RMB5bn retail tranche of total RMB20bn issuance)
- 1st and only RMB bond out of India (IDBI Bank RMB650m)
HSBC is leading market maker in CNH FX - all products
Offshore RMB - beyond HK
Malaysia - 1st and only foreign bank as market maker of RMB-Ringgit direct quotation in China
Japan - FX hedging for a MNC conglomerate
India - 1st and only RMB bond out of India (IDBI Bank RMB650m)
Singapore - completed transaction that allowed a corporate to access RMB funds from the MAS' RMB facility via a bilateral swap arrangement
New Zealand - sole lead manager for 1st dim sum bond by an Australasian company
South Korea - Joint lead manager/bookrunner and sole ratings co-ordinator for 1st dim sum bond by a Korea issuer
Macau - 1st RMB interbank deal
Philippines - 1st FX RMB forward transaction
HSBC Awards
Euromoney Islamic Finance Awards 2012
Best Project Finance House
Best International Islamic Bank
Best Deal of the Year: Axis Financing
Best Sukuk Deal: Republic of Indonesia Sukuk
Most Innovative Deal: HSBC Middle East Limited Sukuk
The Asset Triple A Islamic Finance Awards 2011
Best Islamic Bank, Saudi Arabia - HSBC Saudi Arabia
Best Islamic Investment Bank, Asia - HSBC Amanah
Best Islamic Investment Bank, Middle East - HSBC Amanah
Sukuk House of the Year - HSBC Amanah
Euromoney Awards for Excellence 2011
Best Debt House in Middle East
Best Risk Advisor in Middle East
Best at Cash Management in Middle East
Best Investment Bank in Saudi Arabia (HSBC Saudi Arabia)
Euromoney Islamic Finance Awards 2011
Best Sukuk House
Best International Islamic Bank
-Ends-
HSBC in the MENA Region
HSBC is the largest and most widely represented international banking organisation in the Middle East and North Africa (MENA), with a presence in 14 countries across the region. HSBC has operations in the United Arab Emirates, Egypt, Qatar, Oman, Bahrain, Kuwait, Jordan, Lebanon, Pakistan, Algeria and the Palestinian Autonomous Area. In Saudi Arabia, HSBC is a 40% shareholder of Saudi British Bank (SABB), and a 49% shareholder of HSBC Saudi Arabia for investment banking in the Kingdom. In Iraq, HSBC holds a majority shareholding in Dar Es Salaam Investment Bank. HSBC also maintains a representative office in Libya.
This presence, the widest reach of any bank in the region, comprises some 273 offices and around 12,000 employees. In the full year 2011, HSBC in the MENA region made a profit before tax of US $1,492 million.
Charles Clarke
Senior Manager, Corporate Communications
Global Banking and Markets and HSBC Amanah
HSBC Bank Middle East Limited
Tel: 971 4423 5640
Email: charleswclarke@hsbc.com
© Press Release 2012
