ADB sets benchmarks in 1.2b yuan bond sale
The Asian Development Bank broke new ground in the nascent, offshore yuan-denominated bond market yesterday, pricing the longest-tenored issue to be released so far and the first by a supranational borrower. ADB's issue carries a 10-year maturity and was increased in size to 1.2 billion yuan (HK$1.4 billion) from one billion yuan after it was more than two times oversubscribed. The market was officially sanctioned in 2007 by mainland authorities and until now has seen the issue of mostly two-year or three-year notes. '[The ADB's] step is critical in giving borrowers and investors a reference from which to assess the price of future bond issuance,' said Daniel Mamadou, co-head of debt capital markets Asia at Deutsche Bank.