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Standard Chartered receives approval to issue SDR bonds in China
[HONG KONG] Standard Chartered Bank's Hong Kong branch has obtained approval from the People's Bank of China to issue bonds denominated in Special Drawing Rights (SDRs) in China's interbank bond market.
StanChart is looking to issue 100 million SDRs and the bonds will be settled in renminbi.
A successful offering would be the first from a commercial issuer, and comes after the World Bank printed three-year SDR bonds at 0.49 per cent on Aug 31, the first time securities have been issued in the synthetic reserve currency in 35 years.
Standard Chartered Bank's China branch has been appointed as the joint lead underwriter and joint lead bookrunner to arrange roadshows in Beijing and Shanghai.
China has been promoting the International Monetary Fund's SDR as an alternative to the US dollar, and has made the alternative reserve currency a key focus of its push to internationalise the renminbi.
The renminbi was formally added to the SDR currency basket on Oct 1.