Another dim sum first as Chengtong Development uses SBLC

Dim sum resized 230px
By Carrie Hong
07 May 2014

China Chengtong Development Group has issued the first ever dim sum bond to use an RMB-denominated standby letter of credit (SBLC). The three year deal priced on April 30 at 4% with a size of Rmb600m ($96m). Agricultural Bank of China (ABC) provided the SBLC via its Beijing branch.

So far RMB-denominated SBLCs have only been used for US dollar offerings. Chengtong’s deal marks the second time that ABC has offered an SBLC in the international market. Its first was for Jingneng Investment Group’s $300m deal in February this year.

Chengtong, a Hong Kong-listed subsidiary of ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial