The second largest bank in China is considering using London as the venue for an issue of yuan-denominated bonds for offshore sale, said a source with knowledge of the plans. The listing would be the first in the city of Dim Sum notes sold by a Chinese company.
The notes are expected to be issued in November, although terms are not yet complete, Bloomberg reported Friday. A Fitch Ratings report also from Friday said that China Construction Bank (CCB) plans to sell as much as 2.5 billion yuan ($401 million) of the securities as a means of developing its offshore yuan business.
Fitch added that the notes will be sold by CCBL Funding Plc, a special-purpose vehicle of CCB’s London unit. In a report issued Wednesday on Dim Sum bonds in general, Matt Jamieson, head of APAC research in Fitch’s corporate ratings group, characterized their potential: “Fitch believes the Dim Sum bond market remains in a nascent stage, with significant growth potential over the medium to long term.”