This is the first time a corporate in Chongqing has issued offshore RMB bonds in Singapore and is able to repatriate the funds raised in full. The funds raised can also be used by Chongqing Grain Group outside Chongqing municipality for its business activities in China’s western region.
Chongqing Grain Group CEO & Executive Manager Li Xu said: "We are pleased to be the first company in Chongqing to issue an offshore RMB bond under the ‘China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity’ project. The bond issue not only helps us broaden our funding base, it also helps us optimise our capital structure. More importantly, we have set a precedent for other Chongqing companies to tap on this new source of international funding.”
Clifford Lee, Head of Fixed Income, DBS Bank said, “At its peak, we saw orders in excess of RMB 9 billion from more than 100 investors, a strong testament to the market reception of the transaction. In this landmark deal, the issuer has directly benefited from the Chongqing-Singapore initiative to access offshore capital markets via Singapore and international investors have gained valuable insights and understanding into quality enterprises in Chongqing. We look forward to leveraging our experience with this inaugural issue and help other Chongqing enterprises tap the international capital markets.”
Following the footsteps of the Suzhou Industrial Park and the Tianjin Eco-City projects, China and Singapore signed an agreement on 7 November 2015 to launch the third China Singapore Government-to-Government (“G-to-G”) project in Chongqing Municipality in Western China, based on the theme of modern connectivity and modern services. The collaboration will focus on four priority areas: (i) financial services; (ii) aviation; (iii) transport and logistics; and (iv) information and communications technology.
DBS is amongst the first Singapore companies to participate in the third China Singapore “G-to-G” project, and has signed strategic agreements with Chongqing Municipal People's Government, Industrial and Commercial Bank of China Ltd, China Construction Bank Corporation, Chongqing Liangjiang New Area Administrative Committee and Chongqing Yufu Assets Management Group Co. Ltd in January this year. DBS is committed to providing comprehensive financial services for the development of China-Singapore’s new economic partnership.
DBS Bank (China) CEO Neil Ge said: “We are honoured to be one of the first banks to complete the first offshore RMB bond issued under the ‘China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity’ project and would like to thank the Chongqing government, Chongqing Grain Group, Agricultural Bank of China and Bank of Chongqing for their support. DBS is committed to leveraging our experience and expertise from developed financial markets such as Singapore and Hong Kong, to explore financial innovation with our partners as well as strengthen economic ties between Singapore, Chongqing and Western China.”
Committed to China for over 20 years, DBS is amongst the first foreign banks and the first Singapore bank to locally incorporate in China. DBS Bank (China) Chongqing branch was established in January 2012 and is the bank’s first foray into Western China. In the last four years, DBS has actively supported many Western China and Chongqing companies in their overseas expansion, diversification of their funding bases as well as helped them reduce financing costs.
DBS has also supported Chongqing Grain Group in their foray into syndicated loan financing. DBS led the Group’s first syndicated loan of USD 187.5 million in 2013. It was then the largest syndicated loan led by a foreign bank in China and was awarded “Best Project of the Year” by the China Banking Association. In March 2016, DBS Bank was also the lead arranger for Chongqing Grain Group’s USD126 million syndicated loan.
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About DBS DBS - Living, Breathing AsiaDBS is a leading financial services group in Asia, with over 280 branches across 18 markets. Headquartered and listed in Singapore, DBS has a growing presence in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's capital position, as well as "AA-" and "Aa1" credit ratings, is among the highest in Asia-Pacific. DBS has been recognised for its leadership in the region, having been named “Asia’s Best Bank” by The Banker, a member of the Financial Times group, and “Best Bank in Asia-Pacific” by Global Finance. The bank has also been named “Safest Bank in Asia” by Global Finance for seven consecutive years from 2009 to 2015.
DBS provides a full range of services in consumer, SME and corporate banking activities across Asia. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. These market insights and regional connectivity have helped to drive the bank’s growth as it sets out to be the Asian bank of choice. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all of our 22,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com.
