The HKMA welcomed the announcement as evidence of the continued and ever deeper cooperation between Hong Kong and the Mainland. "We look forward to seeing more issuers make use of the CMU platform to issue RMB bonds in the offshore RMB market", an HKMA spokesperson said, according to an official statement.
CDB is China largest lender financing cross-border transactions and investment with a total outstanding foreign currency loan balance of USD 200 billion. The bank will be the first financial institution in mainland China use of the CMU platform to issue RMB bonds, following two initial issuances by the Chinese Ministry of Finance through the CMU platform in December 2010 and August 2011.
CDB was an early runner on Hong Kong reminbi bonds announcing its intention to issue renminbi bonds in Hong Kong just days after the central government issued regulations allowing policy and commercial banks to issue these bonds in June. In July, it became the first mainland financial institution to offer renminbi bonds in the Hong Kong Special Administrative Region. These initial bond offerings attracted 14 billion yuan. The bank decision to offer its bonds via the CMU platform marks another step in the Hong Kong increasingly popular renminbi-dominated bond market and is further evidence of the Central Government's support for the development of Hong Kong as the premier offshore renminbi center.
CDB also recently celebrated the opening of its offshore investment firm, CDB International Holdings Ltd., in Hong Kong. The holdings company is designed to help the bank access capital markets and invest overseas. CDB Capital Co. Ltd, the bank investing arm which will run the overseas investment operation, is the only Chinese bank-subsidiary licensed to invest in renminbi. The firm will capitalize on CDB deep government relationship and large clientele base to offer integrated financial services to Chinese businesses with international interest or foreign companies wishing to get into China, according to an official press release. CDB international also signed agreements in early December with private equity firms K.K.R., Permire, and TPG Capital, in which it already owns a minority stake, as part of an effort to increase the bank expertise in private equity.
Despite all this emphasis on the international arena, CDB executives have argued that the bank mission has not changed. CDB governor Chen Yuan said in an official press release that the funds raised via Hong Kong bond releases would be used to finance key infrastructure projects and he bank's mandate to help achieve the government's development goals will not change /p>
