ANZ dim sum

ANZ taps arbitrage opportunity with London dim sum

More European and US borrowers could follow ANZ in tapping the dim sum market as swaps move in their favour.
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ANZ: Returning to the dim sum market to exploit arbitrage opportunity
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<div style="text-align: left;"> ANZ: Returning to the dim sum market to exploit arbitrage opportunity </div>

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...

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