National Bank of Abu Dhabi, Hong Kong branch, has completed its second offshore renminbi bond in a CNH200m ($32 million) one-year issue at 3.1 per cent. That pricing translated to around 135bp over Libor, assuming mid-swaps.
BNP Paribas arranged the deal, which will settle on October 16. NBAD’s debut offshore renminbi bond issue was a CNH100m one-year note issue at 2.9 per cent in early September this year. That piece was quoted at 3.418 per cent/2.917 per cent in the secondary market.
The borrower joins a handful of Gulf-headquartered institutions, including Abu Dhabi Commercial Bank and Emirates NBD, which have tapped the Dim Sum market.
But most of the deals have been small in sizes as they have been triggered by reverse inquiries. The last Middle Eastern Dim Sum was ADCB Islamic Finance (Cayman)’s CNH100m five-year note issue at a yield of 4.125 per cent last week.
The first Dim Sum from that region emerged when the A3/A+ rated Dubai lender Emirates NBD closed its debut CNH750m offshore renminbi-denominated three-year bond at 4.875 per cent in March this year.