Deacons advises on the first RMB bill issuance by The People’s Bank of China in Hong Kong

On 9 November 2018, the People’s Bank of China (PBoC) issued RMB20 billion of bills in Hong Kong, of which 10 billion were issued in a three-month tenor and the remaining 10 billion in a one-year tenor, through the Hong Kong Monetary Authority’s Central Moneymarkets Unit.

This is the debut bill issuance in Hong Kong by the PBoC, reinforcing Hong Kong’s status as the global hub for offshore renminbi business and expanding the range of high credit rating renminbi products in the offshore market. The debut issuance will also improve the yield curve for renminbi products and further support the development of offshore renminbi business in Hong Kong.

Deacons, led by Kevin Tong (Partner of Corporate Finance Practice Group), advised the issuing and lodging agent, Bank of Communications Co., Ltd. Hong Kong Branch, as to Hong Kong law in this landmark transaction.

Kevin also advised on the sovereign bond issuance by the Ministry of Finance of the People’s Republic of China in Hong Kong since 2010, including the issue of sovereign bonds with an aggregate principal amount of RMB10 billion in 2018. Deacons is also the legal adviser to the Hong Kong Monetary Authority in relation to the issuances of iBonds and Silver Bonds.