A new issuance programme from Standard Chartered Bank provides a new instrument and market for investors in the renminbi.
Standard Chartered has passed RMB 1 billion in outstanding Euro Commercial Paper (ECP) issuance that positions the bank as the largest issuer of RMB ECP out of London.
This is a further development in London’s desire to become an offshore RMB centre. The scale of issuance illustrates increases liquidity and leverages London’s product capabilities and infrastructure.
ECP bridges the tenor gap between dim sum bonds and traditional deposits for investors. It creates a new instrument and market for investors from Europe and Asia to access short term RMB securities offering attractive yields. 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 StanChart clients.
The ECP issuance offers investors the opportunity to capitalise on the internationalisation of the RMB. This is the third issuance of the bank’s ongoing ECP programme and demonstrates the ability of a UK bank to raise liquidity in London and use those proceeds to facilitate RMB trade globally.
“Trade finance is key to building liquidity in an offshore centre. 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,” said Ben Hung, Chief Executive Officer, Standard Chartered Bank (Hong Kong) Ltd.
The ECP programme demonstrates the bank’s capability to support its clients’ needs to manage their portfolio of working capital currencies.
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