Date: 30 August 2023
Following recent U.S. dollar interest rate hikes and exchange rate fluctuations, pearl bonds have gained traction among Chinese issuers looking for an alternative source of offshore funding other than the traditional offshore U.S. dollar bond market.
Pearl bonds, also known as FTZ offshore bonds, refer to fixed income securities issued for the purposes of raising offshore funds in the China (Shanghai) Pilot Free Trade Zone (FTZ) and other offshore areas in China, or in other overseas markets where the China Central Depository & Clearing (CCDC) are responsible for fixed income securities. Compared with offshore U.S. dollar bonds, pearl bonds share very similar issuance structures, intermediaries, review and registration conditions, and enjoy more flexible issuance rules.
Pearl bonds are rapidly becoming an important financing tool for diversifying offshore RMB denominated products and promoting the internationalisation of the currency.
This hybrid seminar was delivered in Chinese and featured a series of speakers covering the legal, underwriting, and listing perspectives of a pearl bond issuance, as well as the prospects of offshore issuance under the Southbound Bond Connect scheme.
Mr. Ricco Zhang, Senior Director, Asia-Pacific, ICMA
Ms. Denise Jong, Head of Global Corporate Team and Partner, Reed Smith Richards Butler LLP
|16:10||The listing perspective: Navigating Macao's Bond Market: A Comprehensive Overview From Exchange to Products
Mr. Carlos Fan, Marketing Director, Chongwa (Macao) Financial Asset Exchange Co., Ltd.
|16:30||The legal perspective
Ms. Vivian Ji, Partner, Reed Smith Richards Butler LLP
|16:50||The underwriting perspective: Introduction to the issuance of offshore Renminbi bonds and US dollar bonds from the perspective of trustees
Mr. Chan Ying Teddy, Assistant General Manager & Head of Agency & Trust Securities Services Treasury & Markets Group, China CITIC Bank International Limited
|17:05||Introduction to pearl bonds
Ms. Yuanyuan Zheng, Senior Manager, Pearl Bond Business Group, China Central Depository & Clearing Co., Ltd. (virtual)