Amsterdam, Brussels, Lisbon and Paris – 15 September 2014 – Euronext, the primary exchange in the Euro zone, is pleased to welcome the first offshore RMB denominated bond listing by Bank of China(BOC), on its regulated Euronext market. In addition Euronext has today signed a Memorandum of Understanding (MOU) with BOC to develop comprehensive strategic relationships between the two companies.
The RMB denominated bond, which is called “the Arc de Triomphe Bond”, was successfully issued by BOC in July 8. The bond was admitted to listing on Euronext through a private placement with a total issued amount of RMB 2 billion, comprising two tranches of RMB 1.5 billion at an interest rate of 3.35% reaching maturity in 2016 and RMB 0.5 billion at 3.85% reaching maturity in 2019. The issuance was oversubscribed 3.65 times, with the total subscription amount hitting RMB7.3 billion. Investors come from many different geography locations, with European investors accounting for 34% of the total, reflecting the keen interest and strong confidence of this market in RMB business. The aim of the bond listing is to support business and financial development of euro zone companies active in China.
The MOU, signed today by Anthony ATTIA, CEO of Euronext Paris, and TIAN Guoli, Chairman of BOC, will be the starting point to further business interests between the two companies. Given that the RMB currency is increasingly used in cross border transactions, today’s signature will lead to many business opportunities for both companies. It is expected that the cooperation between the two companies will further push forward the RMB internationalization, and will facilitate Paris to become an offshore RMB business center. The MOU will also pave the way for Chinese enterprises to come to Europe for finance, investment and commodities trading.
Bank of China is China's most international and diversified bank with a unique extensive RMB clearing network and a global payment system. The Bank's businesses include commercial banking, investment banking, direct investment, investment management, insurance, fund management and aircraft leasing and so on. BOCHK, BOC Macao Branch, Taipei Branch, and Frankfurt Branch are, in their local markets, the only RMB clearing banks designated by PBOC, the central bank of China. BOC is also the RMB clearing bank of Malaysia, Russia, Luxemburg, Cambodia, and Philippines. In addition, BOC has become the main clearing channel in Great Britain, Germany, France, Japan, South Korea, Indonesia, and South Africa.
TIAN Guoli, Chairman of BOC said, “The successful issue and listing of the Bondis a symbol of RMB internationalizationwith a more solid basis on the European continent, and it is alsoa reflection of great attention and recognition of RMB from the global financial market. We believe that the cooperation between Bank of China and Euronext will further diversify RMB investment and financing options in the European markets, increase offshore RMB liquidity and therefore enhance RMB business development in Paris and Europe at large.”
“We are delighted that Bank of China chose to list their RMB denominated bond in Paris highlighting its willingness to develop the offshore RMB market on Euronext’s markets and underscoring our position as a leading financing centre attracting high quality companies from across the world.” said Dominique CERUTTI, CEO of Euronext. “Furthermore, by signing the MOU today, we are honored to develop a new relationship with this key Asian player, allowing both companies to explore opportunities to enhance cooperation between each otherand bringing further visibility to Euronext in the important Asian market.”
Today, to celebrate the introduction of the new bond, TIAN Guoli, Chairman of BOC, rang the bell in Paris to open the trading on Euronext’s European markets. He was accompanied by Anthony ATTIA, CEO of Euronext Paris.