First dim sum bonds issued in Singapore

The first yuan-denominated bonds were issued in Singapore yesterday. Global banking heavyweights HSBC and Standard Chartered issued 2 and 3 year notes worth 1.5 billion yuan or 240 million US dollars on aggregate.

HSBC priced 500 million yuan of two year notes at 2 and a quarter percent through its Singapore branch while Standard Chartered raised 1 billion yuan of three-year notes at 2.625 percent. -- Other banks, such as Singapore's largest lender, DBS Group is also looking to issue dim sum bonds in Singapore. --Analysts from HSBC estimate that offshore debt sales denominated in the Chinese yuan may reach as much as 360 billion this year. Depository services have also been launched yesterday by the Singapore Exchange for yuan-denominated bonds, in a bid to boost the city's position as an offshore hub for issuers and investors of dim sum bonds.