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ANZ prepares for first foreign Basel III Dim Sum
[HONG KONG] ANZ is set to issue the first Basel III compliant Dim Sum bond from a foreign bank, with plans to sell a Tier 2 note in renminbi.
Along with HSBC it will act as joint global co-ordinator. CCB International, ICBC and Standard Chartered will act as joint bookrunners.
James Holian, head of debt syndicate Asia at ANZ, described the initial reception to the deal as strong and said it was in line with its strategy to access the Chinese currency market. "ANZ remains keen to look at a variety of markets for issuance of new Basel III style instruments," he said. "Having successfully tapped the CNH market in the past, it is deemed an opportune moment to revisit. Issuing in CNH is also consistent with the bank's commitment to the Asia region."
The likely size of the deal is estimated to be north of 1 billion yuan (US$161m). Terms are expected to be similar to China Construction Bank's November ten-year non-call five Tier 2 bond, which priced at 4.9 per cent and is now yielding around 4.67 per cent. An investor roadshow will take place in Hong Kong on Monday and in Singapore on Tuesday.