Dim Sum bonds are RMB denominated bonds issued in Hong Kong. Dim Sum bonds is an important offshore RMB product in the internationalization of RMB.  The advantages of Dim Sum bonds are:

1) Credit rating from rating agency is not compulsory. This saves time and costs when compared to USD-denominated bonds.

2) Lower financing cost. The required return of Dim Sum bonds is lower than onshore RMB loans and the issuance fees are less than USD-denominated bonds.

3) Issuance of Dim Sum Bonds requires a shorter time frame compared to USD-denominated bonds. The underwriter(s) will be responsible for the whole issuance process and underwriting. Issuance of Dim Sum Bonds can help build a borrower’s reputation in the capital market. A successful issuance is affirmation of the borrower’s reputation in the market. After the first issuance, it will be convenient to issue Dim Sum bond again in the future.

According to Bloomberg’s 2011 Hong Kong Dim Sum Bonds underwriter league table, Agricultural Bank of China Hong Kong Branch ranked 10th (and 3rd for Chinese Bank) in the underwriter list for Dim Sum Bonds issuance in Hong Kong, having arranged and underwritten Forty Billion Renminbi worth of deals for many conglomerates including: being appointed as Co-Lead Arranger and Bookrunner for the PRC Finance Ministry’s RMB 20 Billion Bond Issuance, Citic Pacific, China Chengtong, Sinotrans, Beijing Enterprise, Longyuan Power and China Eastern Airlines etc.

Agricultural Bank of China, with its advantage networks and experience in mainland China, will provide one-stop solution for the issuance of Dim Sum bonds. Apart from arranging bond issuance, we also provide full service consulting for regulatory approval process and cross-border regulations of RMB transactions.