Bank of China to list first “Schengen bond” on the Luxembourg Stock Exchange
The Bank of China has launched its first offshore Renminbi (RMB) “Schengen bond” on the Euro MTF market of the Luxembourg Stock Exchange.
The launch makes the Bank of China the first Chinese mainland company to issue RMB bonds in the Eurozone.
This three-year bond, priced at 3.50 per cent, amounts to a total of RMB1.5 billion and is issued under the USD10 billion MTN program of the Bank of China Group.
Robert Scharfe, CEO of the Luxembourg Stock Exchange, says: “The choice of Luxembourg as the listing place demonstrates the confidence of the Bank of China Group towards Europe and especially Luxembourg as a prime international financial centre. This listing also strengthens our number one position in the world for the listing of offshore RMB denominated bonds outside Asia.”
This first offshore RMB bond was named “Schengen bond” using the name of a small village at the borders of Luxembourg, France and Germany which stands for free movement within Schengen member countries. The pronunciation of “Schengen” in Chinese represents the meaning of “root here and develop here”.
Lihong Zhou, general manager of Bank of China Limited, Luxembourg Branch, says: “The successful launch of this Schengen bond is a further step towards the internationalisation of the Renminbi and shows the commitment of Bank of China, China’s most international and diversified bank with a history of more than 100 years, to promote Luxembourg as a leading RMB financial centre in Europe.”
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