OREANDA-NEWS. June 04, 2014. Agricultural Bank of China Limited (ABC) successfully issued RMB1.2 billion Rhine bonds in Germany, becoming the first Chinese bank to issue RMB-denominated bonds on the European continent.

As the first Chinese bank to issue RMB-denominated Formosa bonds in Taiwan last year, ABC once again scored a major “first” in the offshore RMB-denominated bond market. With a two-year holding period and 3.25% coupon rate, the ABC issued Germany bonds were quickly oversubscribed by international investors, a strong boost to the development of offshore RMB market in Europe.

Based on its robust RMB fund resources, extensive clearing network, solid customer base, and safe and efficient IT support, ABC stands heads-and-shoulders over its peers in the RMB business. Ever since it initiated cross-border RMB services for neighboring countries in the early 1990s, ABC has established a system of cross-border RMB products integrating clearing, settlement, trade financing, treasury operations, agency investment in China’s interbank bond market, and RQFII trusteeship. It has opened more than 180 RMB clearing accounts for correspondent banks around the globe and its services cover more than 100 countries and regions. In 2013, ABC handled RMB 1.1 trillion in cross-border RMB settlement.

Europe is the second largest region for cross-border RMB business after Asia and is an important market in ABC’s internationalization strategy. ABC has established a subsidiary in London and the first Eurozone operation institution in Frankfurt, and thus takes an active part in building an offshore RMB center in Europe and providing support for sufficient liquidity in the European offshore RMB market. ABC also introduced the “zero-time difference” cross-border RMB clearing service for European customers to ensure fast delivery of cross-border RMB remittance. In March 2014, ABC successfully sponsored and organized the New Silk Road International Forum on Cross-border RMB Use in Frankfurt and London.

As  China-Europe economic and trade ties grow and offshore RMB business in Europe develops, ABC will continue to exert its advantages in RMB fund resources and network to enhance all-around cooperation with its European peers in cross-border RMB settlement, clearing, investment and financing. ABC remains committed to building this new bridge between customers in China and Europe and to provide better financial services for China-Europe economic and trade cooperation.