Chexim rides on dim sum bond fever

The Export-Import Bank of China captures robust investor demand with its third offshore renminbi bond. The $700 million issue tightens sharply in the secondary market, which is testament to the ferocious appetite for so-called dim sum bonds.

The Export-Import Bank of China Chexim has priced a dual-tranche Rmb5 billion $700 million “dim sum” bond amid resounding demand from institutional investors. The bond offered two tranches, one to retail investors and the other to institutional accounts.

The Rmb4 billion three-year retail tranche offered a coupon of 2.65%. The retail offer closed on November 26. Meanwhile the Rmb1 billion two-year institutional tranche offered a coupon of 1.95%. The latter was massively subscribed, gathering an order book of Rmb53 billion as institutional investors chased the limited offering.

Reflecting this, the two-year bonds tightened sharply yesterday evening and were bid at 1.44%, a hefty 51bp inside the issue yield. However, the bonds are not...

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