RMB offshore bonds are effectively structured to allow issuers to borrow directly in CNH Renminbi - the offshore Chinese currency. These bonds help issuers broadening the spread of investors they borrow from tapping the important Asian market and allow Asian investors to buy bonds in their own currency.
Abdulfattah Sharaf, CEO of the HSBC in the UAE, said:" We feel that this deal has significance for the MENA region. Issuances like this from strong regional names really help establish the UAE as a financing center among Asian investors. As the economic center of the world continues to shift toward the East, it's more important than ever that the Middle East seizes the opportunity to connect with by fast growing Asian economies, above and beyond its traditional role as the provider of energy resources."
"With this issuance, ENBD has effectively diversified its buyer base targeting Hong Kong- and China-based investors who had never bought an ENBC issuance before."
"The Bond was heavily oversubscribed which allowed HSBC to increase the size from an initial CNH $750 million to CNH $1 billion by issuing a 'tap' - issuing a second time to satisfy investor demand. This is typically only done when investors have shown extremely strong interest, which is another positive for the future."