Frankfurt’s first offshore renminbi
bond by a Chinese issuer has signalled its ascent as a European
renminbi hub. It was also the first Goethe bond not governed by
German law, opening the market to international issuers.
China Construction Bank (CCB) Frankfurt
branch’s two-year RMB 1.5 billion deal ($242
million) is the first renminbi-denominated bond from a Chinese
issuer to be listed on Frankfurt’s regulated
market. It is also the first bond listed and cleared in
Frankfurt that was not governed by German law.
Chinese state-owned banks have been selling bonds in
Europe’s financial centres, sparking competition
between prospective renminbi hubs. Before CCB’s
May offering, Bank of China’s Luxembourg branch
offered the first offshore renminbi bonds in the Eurozone. Bank
of China’s Paris branch is reportedly...