OREANDA-NEWS. February 22, 2011. ICBC International, the wholly-owned investment banking arm of Industrial and Commercial Bank of China, joined SinoPac Securities (Asia) as the lead underwriters and bookrunners to issue RMB 300 million worth of RMB bonds in Hong Kong for YFY Cayman Company. This is the first RMB bonds issued in Hong Kong by a Taiwanese firm, as well as a new channel for Taiwanese companies to raise funds in support of their Mainland operations. The deal represents further cooperation between ICBC International and SinoPac Securities subsequent to the joint offering of Taiwan Depository Receipt (TDR) for Yangzijiang Shipbuilding (Holdings) Ltd. in September 2010, which is significant to the deepening cooperation in offering financial services for the Mainland and Taiwanese companies, reported the press-centre of ICBC.

The issuer, YFY Cayman Company, is a subsidiary of Taiwanese listed company Yuen Foong Yu Paper Manufacturing Co.,Ltd. ("YFY") registered in Cayman Island. YFY is the largest private paper manufacturer in Taiwan and holds leading position in the paper making industry. The YFY's RMB bonds are offered through private placement with a size of RMB 300 million. The three-year bonds are targeted at institutional investors.

Industry insiders said that the smooth offering of the first RMB bonds in Hong Kong capital market by Taiwanese firm may help drive more Taiwanese companies and investors to choose RMB-denominated financial products, speed up the internationalization of RMB and promote HK as a RMB offshore center. Meanwhile, economic exchanges between Mainland and Taiwan gather speed since the start of the Economic Cooperation Framework Agreement (ECFA). Taiwanese companies issuing RMB bonds in Hong Kong as a new funding channel adds impetus to the economic and commercial ties between companies on the two sides of the Taiwan Strait, strengthens the communication between Taiwanese companies and Mainland market, and helps Taiwanese companies expand their presence in the Mainland.