On 16 October 2017, China Construction Bank Corporation, Singapore Branch successfully issued SGD 500 Million “The Belt and Road Initiative” Infrastructure SGD bonds, to be listed on Singapore Exchange Securities Trading Limited (“SGX-ST”). This is China Construction Bank Corporation, Singapore Branch’s inaugural SGD bond issuance in the local debt markets as well as the second bond issuance within “The Belt and Road Initiative” Infrastructure bond series. Fitch has granted “A” rating for this bond issue.
The SGD 500 Million 3-year bonds were priced at a coupon of 2.08%, attracting investors from different countries and regions, including Singapore, Hong Kong, Macau, United Kingdom, and Germany. The issue received orders in excess of SGD 740 million and achieved a tightening of 23 bps from initial price guidance.
This bond issuance is China Construction Bank (CCB)’s response to the Chinese government’s “The Belt and Road Initiative”, focusing and supporting the construction of basic infrastructure. In April 2017, CCB opened a Head Office level infrastructure financing services center and a private banking center in Singapore. This expansion will leverage on the strength of Singapore's infrastructure finance capabilities to provide financing to “The Belt and Road Initiative” projects such as railways, ports, aviation, logistics, energy, telecom businesses. The private banking center will provide services to High-Net-Worth customers in South East Asia (SEA) region. CCB Singapore Branch has indicated that this bond issuance is an important initiative for the bank to take root in SEA. The funds raised will be used in “The Belt and Road Initiative” related project financing. The healthy order size received from the market has also demonstrated investors’ confidence in the Chinese economy.
About China Construction Bank Corporation
China Construction Bank Corporation, established in October 1954 and headquartered in Beijing, is a leading large-scale joint stock commercial bank in Mainland China with world renowned reputation. The Bank was listed on the Hong Kong Stock Exchange in October 2005 (stock code: 939) and listed on the Shanghai Stock Exchange in September 2007 (stock code: 601939). At the end of 2016, the Bank’s market capitalization reached US$192,626 million, ranking fifth among all listed banks in the world. In terms of Tier 1 capital, the Group ranked second among the World’s Top 1000 Banks by the UK magazine The Banker in 2016.
The Bank has an extensive customer base with established banking relationships with many of the largest business groups and leading companies in industries which are strategically important to China's economy. With 14,985 banking stores and 362,482 staff members, the Bank provides services to hundreds of millions of personal and corporate customers,. Overseas branches are maintained in Singapore London, Luxembourg, Paris, Milan, Hong Kong, Frankfurt, Amsterdam, Johannesburg, Tokyo, Osaka, Seoul, New York, Ho Chi Minh City, Sydney, Melbourne, Taipei, Brisbane and Toronto, and various subsidiaries fall under the group, such as CCB Asia, CCB International, CCB London, CCB Russia, CCB Dubai, CCB Europe, CCB New Zealand, CCB Principal Asset Management, CCB Financial Leasing, CCB Trust, CCB Life, CCB Futures and Sino-German Bausparkasse.
China Construction Bank Corporation, Singapore Branch was established on 28 March 1998 and was issued a wholesale banking licence by the MAS on 9 July 2010. It offers various financial services and products to Singapore companies as well as medium to large Chinese companies, in the areas of corporate banking, trade finance, investment banking, private banking business and other financial services.
Visit www.ccb.com for more information.
