BOC confirms issue at $4b

The Bank of China Hong Kong branch yesterday confirmed the size of its floating rate certificates of deposit at $4 billion.

The issue received an overwhelming response with an aggregate subscription of $9.3 billion from 61 financial institutions.

The issue has a maturity of five years and carries an interest rate of 35 basis points over the one-month Hong Kong interbank offered rate.

The bank said it would apply for the Hong Kong Monetary Authority's Liquidity Adjustment Facility.

The subscription level and the number of participants are the largest in Hong Kong.

The bank capped the issue size at $4 billion due to the new quota system of foreign debt-issuing for mainland banks' overseas branches.