Hoping to revive international blue bond issuance in the bloc, Chinese provinces rushed to announce offshore renminbi deals. One of them is the People’s Government of Hainan Province of The People’s Republic of China. They have made the offshore blue bond debut with a multi-tranche Dim Sum trade. This covers both blue and sustainability features. The deal was in order to promote internationalization of the renminbi. Thus, it could pave the way for more government bonds in the near future.
The local government have sold the Rmb5bn senior Reg S bond. This deal covers the two-year blue tranche, the pricing is at 2.42% or a Rmb2.6bn sustainability three-year at 2.65%. There is also a Rmb1.2bn sustainability five-year at 2.85%. These were sold at par. 2.75% area, 3% area, and 3.2% area are the respective initial guidance. Based on the information, the order have reached Rmb10bn covering Rmb9.375bn from the leads. The final guidance on the announcement was at the eventual pricing levels. There are at least two more local governments following this scenario to enter the Dim Sum market.
They are the People’s Government of Guangdong Province of the People’s Republic of China and People’s Government of Shenzhen Municipality of Guangdong Province. The local government in Guangdong marketed a three-year note at initial price guidance of around 3% in Macau. Meanwhile, People’s Government of Shenzhen Municipality of Guangdong Province government announced the multi-tranche deal. This is split between a two-year conventional bond and the three-year green bond, plus five-year blue bond. Meanwhile, the People’s Government of Guangdong Province of the People’s Republic of China haven’t priced during the review.