28.04.2014 – 14:26
KfW issues Renminbi Bond with Listing on Frankfurt Stock Exchange
- First Listing of a RMB bond issued by KfW on the Frankfurt Stock Exchange - KfW supports the efforts to establish Frankfurt as a financial center for RMB transactions in Europe
Today KfW issues its first bond in Chinese Renminbi (RMB) being listed on the regulated market of the Frankfurt Stock Exchange. The bond with a volume of RMB 1 billion (approx. EUR 120 million) has a maturity of 2 years. Final terms and conditions are expected to be set on April 29, 2014. Commerzbank and Deutsche Bank jointly act as lead managers of the transaction. The bond will be listed in Frankfurt; Clearstream Banking AG, Frankfurt will be responsible for the settlement of the bond.
With this new RMB bond KfW addresses institutional investors; the RMB as a new global asset currency attracts increasing demand of respective investors. Especially these investors seek issuers with excellent credit ratings like KfW.
"Being one of the most active global issuers we closely monitor all developments on international capital markets. We are able to issue our bonds immediately once the market is receptive: In the currently favourable market environment we offer our investors a RMB bond in a promising market segment for KfW", explains Dr. Günther Bräunig, member of KfW's Executive Board and responsible for capital markets.
KfW already issued RMB bonds in 2012 and 2013.
"The first listing of a RMB bond on the Frankfurt Stock Exchange emphasizes the significance of Frankfurt as a financial center. Being Germany's largest promotional bank we support the recent initiative to promote Frankfurt as a financial center for RMB, which is backed by several parties both in politics and economy. This also represents a macroeconomic effort which we welcome, particularly with regards to the potential benefits for the export-oriented small and medium sized enterprises. "
KfW intends to issue further RMB bonds listed in Frankfurt given a favorable market environment and investor demand.