September 20, 2010

Deutsche Bank completes its first RMB debt offering in Hong Kong

Deutsche Bank AG (Hong Kong Branch) announced today it has completed its first Renminbi (RMB) debt offering with a RMB200 million self-led deal. The transaction represents a significant step towards developing Hong Kong’s RMB debt market as a liquid and viable source of RMB financing for foreign issuers.

Daniel Mamadou, Co-Head of Debt Capital Markets and Corporate Coverage, Asia at Deutsche Bank, said: “Deutsche Bank has a long history in developing Asia’s domestic debt capital markets, acting as a primary dealer in key government bond markets around the region.

“This transaction represents a small but significant step towards demonstrating the potential for Hong Kong’s RMB debt market to become a reliable and efficient source of RMB financing.

“We are extremely confident this market will continue to develop alongside Hong Kong’s growing RMB deposit base and its efforts to establish itself as an offshore RMB centre.”

Comprising 2-year certificates of deposit, the deal was priced with a 2% fixed semi-annual coupon and was sold to private bank investors.

Gunar Schramm, Asia Pacific Treasurer at Deutsche Bank, said: "In addition to providing funding for the Hong Kong Branch, accessing this new market brings welcome diversification benefits to the Bank's global funding base."

The deal represents the second transaction Deutsche Bank has arranged in the RMB debt market, following a RMB500 million deal for China Development Bank on 2 September 2010.

Hong Kong’s RMB deposit base currently stands at RMB103.7 billion (USD15.2 billion) according to the Hong Kong Monetary Authority – a figure that is expected to increase significantly following the launch of a pilot scheme by the People’s Bank of China in June to settle trade between Hong Kong and China in RMB.

For further information, please contact:

Deutsche Bank AG                                

Mark Bennewith
+65 6423 8413        

About Deutsche Bank

Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 81,929 employees in 72 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.

PDF version