Deutsche Bank Bao Dao bond reveals retail concerns

Author: Ashley Lee | Published: 24 Jul 2013
  • Deutsche Bank was the first foreign issuer to offer Bao Dao bonds, or offshore renminbi bonds cleared in Taiwan;
  • The deal was offered to both institutional and retail investors. This is unusual for dim sum offerings – those in Hong Kong are limited to institutional investors;
  • But new regulations in Taiwan could deter further issuances to retail investors; regulators are looking to tighten regulations on retail offerings while loosening regulations on institutional offerings.

Deutsche Bank’s Taiwan dim sum bond, or Bao Dao bond, was issued to retail investors. It may be the start of a trend, but it depends on local regulations.

Although Hong Kong has been the home of offshore renminbi (RMB), or dim sum bonds, the market has recently expanded to Taiwan and Singapore as both...