China will sell 10 billion yuan ($1.57 billion) worth dim sum bonds via the Hong Kong Monetary Authority's Central Moneymarkets Unit platform this Thursday, the city's de-facto central bank said on Friday.
Four tenors are available for institutional investors, including 5 billion yuan three-year piece, 3 billion yuan five-year piece and 1 billion yuan each for 10-year and 20-year, the HKMA said in a statement.
In addition to the institutional tranche, China's Ministry of Finance (MOF) will sell dim sum bonds worth 2 billion yuan each to foreign central banks/regional monetary authorities and retail investors.
The MOF is the biggest and most prolific player in the primary market of dim sum bonds and its bond sales are a much- awaited event among investors as it sets benchmarks for other issuers.
It will be its seventh annual sale of yuan bonds in Hong Kong that is aimed at bolstering the development of an offshore yuan debt market. The first batch of 14 billion yuan worth of yuan-denominated bonds for 2015 was auctioned on May 20.
The dim sum bond market is facing strong headwinds this year as Chinese issuers have switched back to onshore markets for cheaper funding, while investor demand has been curbed due to the yuan depreciation.
Offshore yuan bond issuances excluding certificates of deposit amounted to 127 billion yuan in the first 10 months of this year, compared with 281 billion yuan in 2014, according to Bank of China International statistics.
The MOF has appointed Bank of Communications Hong Kong branch as the issuing and lodging agent.