Bond Connect Launches International Electronic Bond Issuance

Bond Connect Company Limited (BCCL) is pleased to announce the launch of its new international electronic bond issuance system, ‘ePrime’, on October 20th, 2020. BCCL is also delighted to welcome its first bond issuance on ePrime, on the day of its launch, from Agricultural Development Bank of China (ADBC).

The BCCL ePrime system, operating offshore in Hong Kong, offers a one-stop solution for book building, pricing, and allocation of offshore securities including: US dollar-denominated bonds issued by Chinese institutions, known as Kungfu bonds;  and bonds denominated in RMB issued in Hong Kong, known as Dimsum bonds, etc.

To promote the global issuance of Chinese bonds, 13 offshore underwriters have already signed up to be onboarded with ePrime. They are: Standard Chartered Bank, Bank of China (HK), Bank of China HK Branch, Bank of Communications HK Branch, CCB (Asia), CITIC Securities, Crédit Agricole CIB, CTBC Bank, KGI Asia, Mizuho Securities, CEB HK Branch, CITIC Bank Int’l, and CNCB.

BCCL in February 2019 launched the Primary Market Information Platform (PMIP) to facilitate international participation in the primary bond market. PMIP facilitates the publication, by issuers and underwriters, of information on new Chinese bond issuances to global investors. A total of 24 issuers and underwriters have been onboarded on PMIP, and they have published issuance information on approximately 3000 bonds.

ePrime represents another important step in the evolution of the primary bond market in the region, enabling electronic access to the primary bond market and complementing the existing PMIP. BCCL has engaged with issuers and underwriters throughout the design and launch process, ensuring testing and system optimisation.

The first primary issuance via ePrime with ADBC attracted, in aggregate, orders of RMB 5.7 billion and was oversubscribed by more than 2.69 times. The issuance included:

  • A 3-year 2.2 billion RMB tranche at 3.05% yield
  • A 5-year 1.5 billion RMB tranche at 3.25% yield
  • A 10-year 2 billion RMB tranche at 3.80% yield

ePrime’s smooth operation during issuance successfully facilitated optimized execution and delivery by the Joint Global Coordinators (JGCs) and Joint Bookrunners(JBRs).

BCCL will look to continue to enhance ePrime to meet evolving market needs and provide seamless system and information services to both issuers and underwriters.

Source: BCCL

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