State Grid’s 14.9 bn Yuan Issuance Sets New Record for Hong Kong’s Dim Sum Market

Hong Kong’s offshore yuan bond market has once again broken new ground, as State Grid Corporation of China launched the largest single issuance by a Chinese state‑owned enterprise in the city’s dim‑sum market. The deal, coordinated by Bank of China as a joint global arranger, raised 14.9 bn yuan (about US$2.2 bn) through three tranches:

• 3.9 bn yuan of five‑year bonds priced at a yield of 1.86 %.

• 7 bn yuan of ten‑year notes set at 2.18 %.

• 4 bn yuan of twenty‑year debt issued at 2.46 %.

Investor appetite was overwhelming, with total orders reaching 193.8 bn yuan – more than thirteen times the amount offered. The success reflects the city’s growing attractiveness for issuers, driven by lower yuan borrowing costs and the availability of longer‑dated maturities in Hong Kong’s expanding offshore market.