On June 23, Hungary’s largest commercial bank OTP Bank Plc. (“OTP Bank”) successfully priced its inaugural public offering of offshore RMB green bonds, making the company the first Hungarian corporate to issue a RMB-denominated green bond in the public market. The transaction raised an aggregate amount of CNH 900 million, with a 3-year term, non-callable for the first 2 years, and an issuance yield of 3.500%. The issuance was offered under Reg S format and will be listed on the Luxembourg Stock Exchange. CICC acted as the Joint Bookrunner for this issuance.

This transaction garnered widespread attention from global investors. On the pricing day, the bond was announced at a guidance price of 3.500% (the number). Post announcement, the deal received strong subscriptions from a diverse group of international investors, including SSA, commercial banks, global funds, reflecting strong investor confidence in OTP Bank’s credit.

Recently, Dim Sum bonds market has increasingly gained its momentum and traction amongst the international issuers, offering an attractive source of funding given the attractiveness in cost and investor diversification. This transaction further enhances the RMB asset offerings in the Dim Sum bond market, offers investors additional opportunities for currency diversification, and supports the ongoing internationalization of the RMB.

CICC played a key role throughout this landmark transaction, leveraging its deep understanding of Chinese and international capital markets to successfully attract a diverse investor base from Asia, significantly enhancing subscription quality and market impact. Looking ahead, CICC will continue to uphold its philosophy of “Chinese Roots, International Reach”, leveraging its extensive experience in domestic and international capital markets to provide exceptional financial services to global clients, supporting the internationalization of the RMB and fostering a new era of global financial cooperation.