As a result of the rapid growth of Hong Kong's RMB deposits and wider RMB use, RMB bonds have become popular in Hong Kong. Seizing this market development opportunity, this month Agricultural Bank of China Limited (ABC) (601288.SH)successfully led the 1-billion-yuan RMB bond underwriting for CITIC Pacific Limited (5-year maturity with a coupon rate of 2.7%). The contract was signed on July 27, 2011. This was the second overseas RMB bond underwriting completed by ABC in Hong Kong. Earlier in May, ABC underwrote the RMB bond floated by the China Chengtong Development Group Limited.

For this bond issue, ABC Hong Kong Branch and the ABCI Capital Limited were the joint leading underwriters, and the former also worked as the sole book manager. This successful bond issue consolidated ABC's market status as a leading offshore RMB bond market underwriter. It also accumulated operational experience for ABC to develop offshore RMB bond issue, which has a huge development potential. It also further increased ABC's business competitiveness in Hong Kong.