The emerging markets bank claims this is a further development in London’s quest to become an offshore RMB centre, with the scale of issuance also illustrating the momentum taking place in the market.
Listed on Euroclear, ECP bridges the gap between “dim sum” bonds and traditional deposits for investors; in other words, it creates a new instrument and market for investors from Europe and Asia to access short-term RMB securities.
A large part of the funds raised will be used to provide inter-market liquidity between London and Hong Kong to support RMB trade assets for Standard Chartered’s clients.
Ben Hung, chief executive officer of Standard Chartered in Hong Kong, comments: “Close collaboration between London and Hong Kong will help interlink liquidity between the two offshore centres and further support the growth of RMB-denominated global trade finance, including those originated from Hong Kong.”
Philippe Lintern, the group’s head of global markets, Europe, adds: “Our ECP issuance offers investors the opportunity to capitalise on the internationalisation of the RMB.
“This is the third issuance of our ongoing ECP programme and … it demonstrates the ability of a UK bank to raise liquidity in London and use those proceeds to facilitate RMB trade globally.”
Source:
bankingtimes.co.uk
