Standard Chartered today announced in Singapore that it has passed RMB 1 billion in outstanding Euro Commercial Paper (ECP) issuance, positioning the Bank as the largest issuer of RMB ECP out of London.
This is a further development in London's quest to become an offshore RMB centre, the scale of issuance illustrating the pace and momentum taking place in this market. It increases liquidity and leverages London's product capabilities and infrastructure. Listed on Euroclear, the ECP bridges the tenor gap between 'dim sum' bonds and traditional deposits for investors; in other words, it creates a new instrument and market for investors from Europe and Asia to access short term RMB securities offering attractive yields. A large part of the funds raised will be used to provide inter market liquidity between London and Hong Kong to support RMB trade assets for Standard Chartered's clients.
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