DBS completes one billion yuan offshore bond deal for Chongqing Grain

SINGAPORE'S DBS Bank said it has completed a one billion yuan (S$202 million) bond deal for its client Chongqing Grain Group, a Chinese agri-commodities firm.

DBS said it was the first time a Chongqing corporate has issued offshore renminbi bonds in Singapore and is able to repatriate the funds raised in full.

The three-year bond is priced at 4.02 per cent, with an irrevocable renminbi-denominated standby letter of credit by the Agricultural Bank of China.

Clifford Lee, head of fixed income at DBS, said the transaction was also the first public corporate offshore renminbi issue after Brexit and the largest corporate offshore renminbi deal in 2016.

The order book reached more than nine billion yuan from about 100 investors, he said.

The bond deal is Chongqing Grain's first attempt at raising money from international bond markets. Previously, DBS supported the firm in syndicated loan deals denominated in US dollars.

"In this landmark deal, the issuer has directly benefited from the Chongqing-Singapore initiative to access offshore capital markets via Singapore and international investors have gained valuable insights and understanding into quality enterprises in Chongqing," Mr Lee said.