Guotai Junan Securities is to begin utilising Euroclear Bank’s Yulan bond structure, enabling Chinese issuers to gain better exposure to a wider foreign investor base.
Euroclear Bank’s Yulan bonds are issued through Shanghai Clearing House with international investors able to benefit from real time multi-currency delivery versus payment settlement with any counterparty within Euroclear Bank’s network.
With these Yulan bonds, Chinese issuers are now able to reap the benefits of a greater liquidity pool and improved cost efficiencies, says Euroclear.
Nie Xiaogang, chief financial officer and deputy general manager at Guotai Junan Securities, says: “The successful issuance is another remarkable achievement in financial innovation by Guotai Junan.
He adds: “Not only did it assist in our global business expansion, it also played a leading role in improving capacity levels of better allocating global financial resources as well as further strengthening the financial innovation function of Shanghai city as the International Financial Center, symbolising the entry into a new stage by Chinese institutions for overseas bond issuance activities.”
Stephan Pouyat, global head of capital markets and funds services at Euroclear, comments: “We are extremely pleased to see this issuance come to fruition which is especially meaningful given that this is the first Chinese investment bank to use our Yulan structure. We look forward to 2022 where we see a healthy pipeline of issuances from all sectors continuing the momentum of this new and innovative structure.”
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