Luxembourg: Europe's offshore RMB centre?

Author: | Published: 24 Feb 2014

Jan Willem Möller of Loyens & Loeff analyses why the country is emerging as the eurozone’s hub for dim sum bonds

In line with the growing importance of the Chinese yuan or renminbi (RMB) as a global currency, the investor-base of offshore RMB denominated bonds is becoming increasingly international. While Hong Kong continues to be the undisputed leader in the race to become an offshore RMB hub, the likes of Singapore, Taipei and London are also attracting RMB business. Luxembourg is emerging as a leading platform for the issuance and listing of so-called dim sum bonds in the eurozone.

Luxembourg is an interesting option for companies searching for alternative RMB funding, while giving eurozone investors a chance to diversify their risk exposure. The dim sum bonds listed in Luxembourg today, combined with recent initiatives in both the public and the private domain to support the growth of RMB business, are...