Beijing/Brussels/Shanghai, 4 February 2021 – Euroclear Bank, the Brussels based International Central Securities Depository (ICSD) is pleased to announce that the Bank of China has become the first issuer to utilise its recently launched Yulan bond structure. The issuance was priced at $500 million with a tenor of three years and was four times oversubscribed.
Euroclear Bank’s Yulan bonds are issued through Shanghai Clearing House with international investors able to benefit from real time multi-currency DVP settlement with any counterparty within Euroclear Bank’s network. With these Yulan bonds, Chinese issuers are now able to gain direct exposure to a wider foreign investor base, reaping the benefits of a greater liquidity pool and improved cost efficiencies.
Zhou Quan, Head of Asset and Liability Management Bank of China said: “In our role as one of the largest financial institutions in China, we are committed to supporting innovative initiatives that will benefit offshore and onshore bond markets and promote China´s “dual circulation” development pattern. We are pleased to be the first issuer of the Yulan bond co-created by Euroclear and Shanghai Clearing House. We expect that this bond structure will yield further success and anticipate that this new generation of bonds will bring increased efficiencies and convenience to issuers and investors globally.”
Wang Hong Bo, Deputy General Manager of Shanghai Clearing House commented: “We would like to congratulate Bank of China on the issuance of the first Yulan bond! With the guidance of regulatory authorities, Shanghai Clearing House will continue to work together with Euroclear Bank to improve market efficiencies, by exploring cross-border cooperation to facilitate easier access for domestic and overseas market participants.”
Stephan Pouyat, Global Head of Capital Markets and Funds Services at Euroclear added: “This issuance by the Bank of China is the culmination of a long standing relationship with the Chinese market. Through a shared goal of building a new issuance model that enables increased foreign investment into the market, we are seeing true demand for this service. For the first time, international investors have full Euroclearable access to mainland Chinese securities. An issuance of this importance is a fantastic way to start 2021 as we continue to add momentum.”