First Euro-Commercial Paper transaction arranged on DBS FIX Marketplace in Hong Kong
Hong Kong, 24 Jul 2024 -
DBS Bank Limited (“DBS Bank”)
and
Sinochem Hong Kong (Group) Company Limited (“Sinochem HK”)
, the flagship overseas investment holding subsidiary of Sinochem Holdings Corporation Ltd. (a PRC wholly state-owned enterprise, “Sinochem Holdings”), announced the execution of the first Euro-Commercial Paper (“ECP”) issuance, a dual tranche transaction totalling USD 500 million, off the Issuer’s USD 2 billion ECP Programme on DBS FIX Marketplace in Hong Kong. DBS was appointed as the sole arranger and dealer of the programme for this inaugural issuance.
The ECP transaction is Sinochem Hong Kong’s debut in the Hong Kong ECP market. The dual tranche transaction had a tenor of 3 and 5 months, and an issue size of USD 350 million and USD 150 million respectively. The transaction is the first ECP issuance from a Chinese Central SOE in the Asia market and is the largest commercial paper issuance executed on DBS FIX Marketplace.
The move is set to drive the development of digital solutions in capital markets as well as Hong Kong’s Commercial Paper market, providing corporates with additional short-term funding opportunities beyond traditional banking solutions. Digitalising the issuance process makes it easier and more efficient for issuers to tap into capital markets, whilst also providing investors with a broader array of short dated investment opportunities.
Li Fuli, Vice President, Chief Financial Officer of Sinochem Holdings Corporation Ltd
. said, “Sinochem Hong Kong used the DBS FIX Marketplace platform to issue its first Euro-Commercial Paper in the Hong Kong bond market, which is a meaningful financial innovation for the company. This issuance is not only an important step for Sinochem Hong Kong and DBS to promote the digitisation of the bond market, but also demonstrates that Sinochem Hong Kong, as the flagship overseas platform of Sinochem Holdings, actively explores overseas financing channels. In this issuance, we received active participation from institutional investors in the market, which reflects the market’s confidence in Sinochem Holdings and Sinochem Hong Kong. We hope that this can open up new financing channels for the Hong Kong bond market, and we also look forward to further collaborating with DBS and other partners to create a more dynamic capital market!”
Cindy Kwan, Managing Director, Investment Banking - Head of Greater China Fixed Income, Global Financial Markets, DBS Bank
said, “We are delighted to work with Sinochem Hong Kong to execute the first Euro-Commercial Paper transaction on the bank’s multi award-winning digital platform, FIX Marketplace. As we continue the journey to bring debt capital markets into the digital era, we aim to use digitalisation and technology to spur evolution and bring substantial benefits to our clients. DBS FIX Marketplace is born out of our efforts to drive this industry change, and it is poised to enable issuers to execute transactions more efficiently and better access capital markets, such as the developing ECP market in Asia.”
Since its launch in June 2021, DBS FIX Marketplace has facilitated over 800 Certificates of Deposit and Euro-Commercial Paper transactions, reaching a total issuance volume of over SGD 55 billion (equivalent to HKD 317 billion). DBS has been the most active dealer for ECP in the Singapore market.
DBS FIX Marketplace aims to be a one stop platform to issue, invest and receive information insights on primary bond market. This offers a unique proposition and an edge over existing platform solutions in the debt capital market space which only tackles segments of the process chain. It reshapes the debt capital market journey by creating an end-to-end digital platform with compelling value propositions for all market participants in the process chain.
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About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “
World’s Best Bank
” by Global Finance, “
World’s Best Bank
” by Euromoney and “
Global Bank of the Year
” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “
World’s Best Digital Bank
” by Euromoney and the world’s “
Most Innovative in Digital Banking
” by The Banker. In addition, DBS has been accorded the “
Safest Bank in Asia
“ award by Global Finance for 15 consecutive years from 2009 to 2023.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit
www.dbs.com
.
About Sinochem HK
Sinochem Hong Kong (Group) Company Limited, registered and founded in Hong Kong in 1989, is indirectly wholly owned by Sinochem Holdings. Sinochem HK is the flagship overseas investment holding subsidiary of Sinochem Holdings and one of the primary overseas platforms for executing Sinochem Holdings’ business strategy.
Sinochem Holdings was established in 2021 through the restructuring of Sinochem Group Co., Ltd. (a PRC wholly state-owned enterprise, “Sinochem Group”) and China National Chemical Corporation Ltd. (“ChemChina”), which are leading state-owned enterprises under the supervision of the State-owned Assets Supervision and Administration Commission of the State Council of China (the “SASAC”) of the State Council.
Sinochem Holdings is the only central state-owned enterprise in China with chemical industry as a main business, supported by comprehensive product systems and sufficient technical reserves.
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