HSBC is launching its first offshore yuan bond, which will be the first offshore yuan deal to be listed in London, IFR, a Thomson Reuters publication, reported on Wednesday.
HSBC has released guidance for the three-year bond at 3.00-3.25 percent. Pricing of the benchmark bond expected is expected in London later in the day, IFR said.
The size of benchmark global dollar bonds is typically $500 million, but in the offshore yuan or CNH market 200 million yuan ($32 million) would be considered a good-sized deal.
London is eager to become a global offshore trading centre for the yuan, a move that would boost the city's position as a major currency and commodities trading hub.
Singapore and Taipei also are vying for a share of the growing offshore yuan business. But all are expected to have to play second fiddle to Hong Kong as Chinese authorities push on with a series of initiatives to internationalize the currency.
The groundbreaking deal is expected to be rated Aa2/AA- (Moody's/S&P), the same as HSBC Bank's Aa2/AA-/AA (Moody's/S&P/Fitch).
($1 = 6.3015 Chinese yuan)
(Asia Economics and Markets Desk; +65 6870 3840)