Australia and New Zealand Banking Group ANZ priced a London-listed Rmb1 billion $157 million three-year offshore renminbi bond on Wednesday night, swapping the proceeds to US dollars.
The bonds were priced at par to yield 2.9%. The proceeds were swapped to dollars at Libor plus 90bp, which is roughly flat to where ANZ’s US dollar funding curve is, though some say its funding level is closer to Libor plus 100bp.
“It makes sense for them to do this from a cost perspective,” said one person away from the deal.
Earlier this year, more issuers had raised renminbi with the intention of remitting the...