Shenzhen sells biggest batch of ‘dim sum’ bonds in Hong Kong with 7-billion yuan issue
- The fourth offering in the last four years, which will fund an array of infrastructure projects, brings total funds raised to US$3 billion
The Shenzhen government will issue up to 7 billion yuan (US$964.4 million) worth of so-called dim sum bonds – yuan-denominated offshore bonds – in Hong Kong, according to a statement on Monday.
The offering, the fourth such issuance in the last four years, is also the largest, bringing the total funds raised by the Shenzhen government in Hong Kong to 22 billion yuan, after offerings in 2021, 2022 and 2023 raised 5 billion yuan each.
For the first time, the bond offering will include a tranche with a 10-year tenure, while also matching the two-, three- and five-year tranches of the previous issuances, the statement of the government website said.
Timing and other details will be announced later, but the Shenzhen government on Monday announced the appointment of 29 banks as underwriters of the bond offerings, including all three note-issuing banks in Hong Kong – HSBC, Standard Chartered and Bank of China (Hong Kong) – alongside international players such as Citigroup, Morgan Stanley and JPMorgan.
The Shenzhen government said the offering is aimed at “promoting the connections in the financial markets in the Greater Bay Area”, and the funds raised will power a wide range of projects.
The two-year tranches will be used for establishing facilities for secondary schools, while the three-year bonds will be green bonds to invest in underground trains and other infrastructure to help cut carbon emissions.
The five-year bonds will raise funds for train and railway facilities, and the 10-year tranches will be used on sustainability projects for healthcare, education and retirement needs, the government said.
