Chinese juice company issues dim sum convertible

A China-based producer of fruit and vegetable juices that is aiming to list in Hong Kong within the next three years has issued a convertible bond denominated in offshore renminbi. The offering, which was guaranteed by its Singapore-listed parent company, is believed to be the first CB to tap into the offshore pool of renminbi in Hong Kong, based on the limited records that exist for this asset class.

Like the first straight bond to be issued in offshore renminbi, the deal is small – only Rmb100 million ($15.6 million) and because the issuer isn’t yet listed, it was also placed with a small group of investors. However, as shown by the development and popularity of straight bonds denominated in offshore renminbi, also referred to as dim sum bonds, since McDonald’s brought the first such deal by an international issuer in August last year, this is a market that has a lot of potential to grow.