British Columbia tests appetite for "dim sum" bonds

Thu Dec 6, 2012 3:21pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* B.C. gov't working with HSBC on potential yuan bond deal

* Officials on way to Hong Kong, Singapore for investor tour

* No deal yet; size and duration undetermined

By Claire Sibonney

TORONTO, Dec 6 (Reuters) - British Columbia is looking to sell "dim sum" bonds denominated in Chinese currency, a local official said, in what could be the first time a foreign provincial government has sampled the offshore debt market of the world's second largest economy.

The western Canadian province's treasury officials are on their way to Asia, with stops in Hong Kong and Singapore, to meet institutional investors and gauge appetite for B.C. bonds issued in the yuan currency, formally known as the renminbi.

"It reflects our desire to promote stronger relations between B.C., Canada and China and the potential for accessing a new source of global liquidity," Jamie Edwardson, director of communications for B.C.'s ministry of finance, said on Thursday.

Edwardson said the government has hired HSBC bankers to work on the deal.

He cautioned that the work was still exploratory and described the tour as a non-deal road show, designed to raise the west coast province's profile with overseas investors.   Continued...