Renminbi Bonds on London Stock Exchange

Renminbi Bonds on London Stock Exchange

Dim Sum Bonds on London Stock Exchange There are currently 73 dim sum bonds listed on London Stock Exchange s markets with a combined outstanding amount of RMB 30.02 billion ($4.8 billion equivalent) from a very diversified issuer base of more than 20 issuers. In 2015, the Peoples Bank of China took further steps towards the internationalisation of the renminbi and opening up of its capital markets. 20 RMB denominated bonds were listed in London by mainland Chinese banks and Supranationals including Bank of China, International Finance Corporation, China Development Bank, Agricultural Bank of China and China Construction Bank. An increasingly wider range of companies is looking at London to issue Renminbi denominated debt securities, and a steadily growing pool of capital is ready to absorb a higher level of dim sum bond issuance. An increased primary market activity has characterized H1 2016 with 38 dim sum bonds listing in London bonds raising CNY 7.86 billion ($1.2 billion) by non Chinese entities from across the world including the first RMB bond by Hungary, the first dim sum bond by a sovereign from Continental Europe

Dim Sum Bonds on London Stock Exchange London Stock Exchange is continuously focusing on expanding the UK s role as a global RMB issuance and trading hub in the Western time zone. Key milestones: Jun 2010: The first RMB denominated bond listed on LSE May 2012: The first RMB retail denominated bond to be listed and traded on LSE s Order book for Retail Bonds Jan 2014: The largest RMB bond issue outside Greater China Jun 2014: The first green dim sum bond Oct 2014: Oct 2015: UK Government issues the first non-chinese sovereign offshore RMB bond Agricultural Bank of China issues its first Green RMB bond Oct 2015: China Construction Bank issues its first off-shore RMB bond Apr 2016: Hungary issues the first sovereign RMB bond in Continental Europe

Alternative Asset Classes: a Gateway into China RMB ETFs the First Step into China For international investors, the possibility to trade ETFs in HKD or CNY opens access to global market participation and exposure to markets previously difficult to access. London Stock Exchange has established secondary market trading arrangements for trading, clearing and settlement in Chinese Renminbi (CNY) and Hong Kong Dollar (HKD). Post trade infrastructure becomes easier as the system is already set up for RMB denominated securities listed in London March 2015: CCB lists first ever RMB-denominated money market ETF in international form

RMB Bond Issuance in London - 2016 Issuer Name Security Name Issue Date Maturity Coupon (%) Amount Issued (CNY) MM/PSM Westpac Banking Corp WSTP 4.19 05/12/21 12/05/2016 12/05/2021 4.19 130,000,000 Main Market First Gulf Bank PJSC FGBUH 4.6 05/13/19 12/05/2016 13/05/2019 4.6 65,000,000 Main Market Standard Chartered Bank STANLN 4 1/4 05/09/18 09/05/2016 09/05/2018 4.25 925,000,000 Main Market Royal Bank of Canada RY 4 05/06/19 06/05/2016 06/05/2019 4 150,000,000 Main Market Commonwealth Bank of Australia CBAAU 4 05/03/18 03/05/2016 03/05/2018 4 170,000,000 Main Market Royal Bank of Canada/Toronto RY 4.12 04/29/19 29/04/2016 29/04/2019 4.12 200,000,000 Main Market Commonwealth Bank of Australia CBAAU 4.15 04/28/19 28/04/2016 28/04/2019 4.15 100,000,000 Main Market QNB Finance Ltd QNBK 4.7 04/27/18 27/04/2016 27/04/2018 4.7 170,000,000 Main Market Hungary Government International Bond REPHUN 6 1/4 04/25/19 25/04/2016 25/04/2019 6.25 1,000,000,000 Main Market Commonwealth Bank of Australia CBAAU 4 1/4 04/21/19 21/04/2016 21/04/2019 4.25 100,000,000 Main Market Royal Bank of Canada RY 4.23 04/21/19 21/04/2016 21/04/2019 4.23 130,000,000 Main Market QNB Finance Ltd QNBK 4.87 04/20/18 20/04/2016 20/04/2018 4.87 120,000,000 Main Market Westpac Banking Corp WSTP 4.39 04/20/20 20/04/2016 20/04/2020 4.39 190,000,000 Main Market Commonwealth Bank of Australia CBAAU 4.23 04/19/19 19/04/2016 19/04/2019 4.23 90,000,000 Main Market Standard Chartered Bank STANLN 4.52 04/15/19 15/04/2016 15/04/2019 4.52 432,000,000 Main Market Standard Chartered Bank STANLN 4.56 04/15/19 15/04/2016 15/04/2019 4.56 470,000,000 Main Market Westpac Banking Corp WSTP 4.8 03/29/19 29/03/2016 29/03/2019 4.8 135,000,000 Main Market Westpac Banking Corp WSTP 4 3/4 03/22/19 22/03/2016 22/03/2019 4.75 130,000,000 Main Market Commonwealth Bank of Australia CBAAU 4.685 03/21/19 21/03/2016 21/03/2019 4.685 150,000,000 Main Market

RMB Bond Issuance in London - 2016 Issuer Name Security Name Issue Date Maturity Coupon (%) Amount Issued (CNY) MM/PSM Royal Bank of Canada RY 5 03/18/19 18/03/2016 18/03/2019 5 150,000,000 Main Market Westpac Banking Corp WSTP 5.02 03/18/19 18/03/2016 18/03/2019 5.02 131,000,000 Main Market National Bank of Abu Dhabi PJSC NBADUH 4 3/4 03/15/19 15/03/2016 15/03/2019 4.75 130,000,000 Main Market Commonwealth Bank of Australia CBAAU 4.85 03/14/19 14/03/2016 14/03/2019 4.85 131,000,000 Main Market Royal Bank of Canada RY 4.85 03/11/19 11/03/2016 11/03/2019 4.85 230,000,000 Main Market Commonwealth Bank of Australia CBAAU 4.85 03/11/19 11/03/2016 11/03/2019 4.85 100,000,000 Main Market Commonwealth Bank of Australia CBAAU 4.95 03/10/19 10/03/2016 10/03/2019 4.95 135,000,000 Main Market Commonwealth Bank of Australia CBAAU 5.07 03/07/21 07/03/2016 07/03/2021 5.07 180,000,000 Main Market Royal Bank of Canada RY 5.08 03/04/19 04/03/2016 04/03/2019 5.08 200,000,000 Main Market Commonwealth Bank of Australia CBAAU 5.08 03/04/19 04/03/2016 04/03/2019 5.08 65,000,000 Main Market Australia & New Zealand Banking Group Ltd ANZ 4.8 03/05/18 03/03/2016 05/03/2018 4.8 131,000,000 Main Market Commonwealth Bank of Australia CBAAU 5.095 03/02/19 02/03/2016 02/03/2019 5.095 150,000,000 Main Market Commonwealth Bank of Australia CBAAU 5.15 02/25/19 25/02/2016 25/02/2019 5.15 310,000,000 Main Market Royal Bank of Canada RY 5.15 01/25/19 25/01/2016 25/01/2019 5.15 195,000,000 Main Market Australia & New Zealand Banking Group Ltd ANZ 5.1 01/25/19 25/01/2016 25/01/2019 5.1 200,000,000 Main Market Australia & New Zealand Banking Group Ltd ANZ 4.96 01/22/19 22/01/2016 22/01/2019 4.96 65,000,000 Main Market European Bank for Reconstruction & Development EBRD 4.4 01/19/18 19/01/2016 19/01/2018 4.4 160,000,000 Main Market National Bank of Abu Dhabi PJSC NBADUH 4.55 01/15/18 15/01/2016 15/01/2018 4.55 130,000,000 Main Market Commonwealth Bank of Australia CBAAU 4 1/2 01/12/19 12/01/2016 12/01/2019 4.5 210,000,000 Main Market

RMB Bond Issuance in London - 2015 Issuer Name Security Name Issue Date Maturity Coupon (%) Amount Issued (CNY) MM/PSM Australia & New Zealand Banking Group Ltd ANZ 4.4 12/24/18 24/12/2015 24/12/2018 4.4 260,000,000 Main Market Westpac Banking Corp WSTP 4.2 12/16/18 16/12/2015 16/12/2018 4.2 130,000,000 Main Market Commonwealth Bank of Australia CBAAU 4 11/27/18 27/11/2015 27/11/2018 4 80,000,000 Main Market Agricultural Bank of China Ltd AGRBK 4.15 10/20/17 20/10/2015 20/10/2017 4.15 600,000,000 PSM China Construction Bank Corp CCB 4.3 10/19/17 19/10/2015 19/10/2017 4.3 1,000,000,000 Main Market First Gulf Bank PJSC FGBUH 4 1/2 08/18/18 18/08/2015 18/08/2018 4.5 230,000,000 Main Market Credit Agricole Corporate & Investment Bank SA ACAFP 4.2 08/05/20 05/08/2015 05/08/2020 4.2 50,000,000 Main Market Australia & New Zealand Banking Group Ltd ANZ 4 07/28/20 28/07/2015 28/07/2020 4 405,000,000 Main Market Lloyds Bank PLC LLOYDS 4.4 07/24/20 24/07/2015 24/07/2020 4.4 100,000,000 Main Market Lloyds Bank PLC LLOYDS 4.53 07/24/25 24/07/2015 24/07/2025 4.53 54,000,000 Main Market Credit Agricole Corporate & Investment Bank SA ACAFP 4.1 07/23/20 23/07/2015 23/07/2020 4.1 125,000,000 Main Market First Gulf Bank PJSC FGBUH 5 04/09/18 09/04/2015 09/04/2018 5 400,000,000 Main Market Commonwealth Bank of Australia CBAAU 4.7 04/09/18 09/04/2015 09/04/2018 4.7 150,000,000 Main Market Commonwealth Bank of Australia CBAAU 4.7 04/09/18 09/04/2015 09/04/2018 4.7 150,000,000 Main Market QNB Finance Ltd QNBK 5 04/02/18 02/04/2015 02/04/2018 5 200,000,000 Main Market QNB Finance Ltd QNBK 5.1 04/01/18 01/04/2015 01/04/2018 5.1 190,000,000 Main Market QNB Finance Ltd QNBK 5.38 03/26/18 26/03/2015 26/03/2018 5.38 160,000,000 Main Market National Bank of Abu Dhabi PJSC NBADUH 4.79 03/17/20 17/03/2015 17/03/2020 4.79 200,000,000 Main Market Commonwealth Bank of Australia CBAAU 4.54 03/09/18 09/03/2015 09/03/2018 4.54 187,000,000 Main Market

RMB Bond Issuance in London - 2015 Issuer Name Security Name Issue Date Maturity Coupon (%) Amount Issued (CNY) MM/PSM Commonwealth Bank of Australia CBAAU 4 1/2 02/26/18 26/02/2015 26/02/2018 4.5 260,000,000 Main Market United Kingdom Government International Bond UKIN 2.7 10/21/17 21/10/2014 21/10/2017 2.7 3,000,000,000 Main Market International Finance Corp IFC 3.1 09/24/19 24/09/2014 24/09/2019 3.1 1,000,000,000 Main Market China Development Bank Corp SDBC 4.35 09/19/24 19/09/2014 19/09/2024 4.35 900,000,000 PSM China Development Bank Corp SDBC 3.6 09/19/19 19/09/2014 19/09/2019 3.6 500,000,000 PSM China Development Bank Corp SDBC 3.35 09/19/17 19/09/2014 19/09/2017 3.35 600,000,000 PSM International Finance Corp IFC 2 06/26/17 26/06/2014 26/06/2017 2 500,000,000 Main Market International Finance Corp IFC 2 01/18/17 11/03/2014 18/01/2017 2 4,924,000,000 Main Market BP Capital Markets PLC BPLN 3.65 02/28/19 28/02/2014 28/02/2019 3.65 1,000,000,000 Main Market Lloyds Bank PLC LLOYDS 4.62 01/17/24 17/01/2014 17/01/2024 4.62 200,000,000 Main Market Bank of China Ltd/London BCHINA 3.45 01/16/17 16/01/2014 16/01/2017 3.45 2,500,000,000 PSM BP Capital Markets PLC BPLN 3.95 10/08/18 08/10/2013 08/10/2018 3.95 1,200,000,000 Main Market ADCB Finance Cayman Ltd ADCBUH 4 1/8 10/11/17 11/10/2012 11/10/2017 4.125 100,000,000 Main Market Lloyds Bank PLC LLOYDS 4.61 09/24/22 24/09/2012 24/09/2022 4.61 100,000,000 Main Market ADCB Finance Cayman Ltd ADCBUH 3.7 07/05/17 05/07/2012 05/07/2017 3.7 200,000,000 Main Market Mitsui & Co Ltd MITSCO 4 1/4 03/01/17 01/03/2012 01/03/2017 4.25 500,000,000 PSM

Case Studies

Case Study Using Green offshore dual currency bond issuance to finance green projects Company Market Sector Rating Company Details Agricultural Bank of China PSM Financials A1/A Company profile Transaction Details Issue Date 20 Oct 2015 Issue Size $400 million / $500 million / RMB 600 million Yield at issue 2.125% / 2.75% / 4.15% Maturity 3 years / 5 years / 2 years Debt issuance story Agricultural Bank of China is one of the top four commercial banks in China. ABC is one of the first standing members of the green finance committee of China Society for Finance and Banking. In 2013, ABC signed the green credit commitment along with other financial institutions, and formulated green credit standards and protocols. The successful issuance and listing of ABC s green bonds on the London Stock Exchange not only fulfils our ambition that was announced as part of the policy outcomes of the latest UK-China Economic and Financial Dialogue, but also manifests the close and fruitful cooperation between Chinese and UK financial institutions on green finance, climate change and adaption initiatives. Joint Leads: ABC, BAML, Barclays, GS HSBC, JPM, MS, SCB, Wells Fargo Based on the green bond management framework, the proceeds from the offering will support renewable energy, energy efficiency, sustainable waste management, sustainable use of land, clean transportation and sustainable water management. The listing is the first international Green Bond issue by a Chinese bank, as well as the first listed Green RMB bond for ABC on the London Stock Exchange.

Case Study Using Green offshore renminbi bond issuance to finance Chinese climate-friendly investments Company Market Sector Rating Company Details International Finance Corporation (part of World Bank Group) Main Market Supranational AAA/Aaa Transaction Details Issue Date 17 Jun 2014 Issue Size RMB 500 million Yield at issue 2.00% Maturity 3 years Company profile Debt issuance story IFC is one of the world s largest financiers of climate-smart projects for developing countries, investing about $11 billion in long-term financing over the last decade for renewable power, energy efficiency, sustainable agriculture, green buildings and private sector adaptation to climate change. IFC is committed to supporting the development of China s capital markets, which are key to creating access to finance for the private sector and especially small and medium businesses. We will continue to seek opportunities to help deepen liquidity and extend the yield curve for offshore renminbi assets. The addition of the renminbi as a new green bond currency also supports our goals to strengthen this important asset class. Sole arranger: HSBC Proceeds from the offering to support projects to reduce greenhouse gas emissions for example, by rehabilitating power plants and transmission facilities, installing solar and wind power, and providing financing for technology that helps generate and use energy more efficiently. In March 2014, IFC became the first multilateral institution to list renminbi-denominated bonds on LSE, raising 2 billion renminbi from international investors. IFC was also the first to set up a program to regularly issue offshore renminbidenominated discount notes. Source: IFC press release, LSEG database, June 2014

Case Study China Construction Bank becomes the first bank from mainland China to issue a dim-sum bond Company Market Sector Rating Company Details China Construction Bank Main Market Financials A1/A Transaction Details Issue Date 20 Oct 2015 Issue Size RMB 1billion Yield at issue 4.3% Maturity 2 years Company profile Debt issuance story CCBC is a leading commercial bank in China providing a comprehensive range of commercial banking products and services. We are among the market leaders in China in a number of products and services, including infrastructure loans, residential mortgage and bank cards. "We are delighted to witness the listing of CCB's off-shore RMB bond on the London Stock Exchange and to confirm that CCB London Branch has become a member of the Exchange. We look forward to ongoing collaboration with the LSE to make further contributions to the internationalisation of the RMB." Joint Leads: CCB International Capital, Hong Kong & Shanghai Banking Corp, Standard Chartered Bank (Hong Kong), UBS Hong Kong Proceeds from the offering will support general corporate purposes and ahead of a state visit by Chinese President Xi Jinping to Britain. China Construction Bank RMB 1 billion bond is the first CCBC off-shore RMB Bond in the London market. in a move to provide more investment products to European investors and speed the internationalisation of the currency.

Case Study Hungary becomes the first country from Continental Europe to issue an RMB denominated sovereign bond Geographical Distribution Asia 72% Country Rating Country Summary Hungary BB+ / Ba1 / BB+ Transaction Details Issue Date 25 April 2016 Issue Size RMB 1 billion Europe 28% Other Europe 8% GDP USD 265 billion Coupon 6.25% Maturity 3 years Middle East & Africa 1% Others 2% Country profile Debt issuance story In April 2016, the Hungarian Government issued a 6.25%, three year bond that raised RMB 1 billion. We believe RMB is going to be an international currency, and play a key role in the global capital market in the coming years. Our strategy is to get into the RMB market now and establish a long term relationship with the Chinese regulators and investors. From a public debt management perspective, we would like to have more diversification in our portfolio, both in currencies and products Sole Lead: Bank of China Hungary became the first country in Continental Europe to issue a renminbi-denominated sovereign bond The issuance proceeds will be used for general purposes. The bond was at least 2.5 times oversubscribed. Distribution by Investor Banks 45% Asset Managers 39% Private Banks 11% Insurers 5%

Case Study The UK Government becomes the non-chinese western country to issue a bond in RMB Company Rating GDP Country Summary United Kingdom Main Market USD 2.6 Trillion Transaction Details Issue Date 21 Oct 2015 Issue Size RMB 3 billion Yield at issue 2.7% Maturity 3 years Country profile In October 2014, the UK Government issued a 2.7%, three year bond that raised RMB 3 billion. The bond has been used to add to Britain s foreign currency reserves and is a sign of the two countries deepening ties The UK government s sovereign renminbi bond issue, the first by a Western country, has been a great success and will deliver value for money to tax payers. Our long term economic plan is working, but the job isn t done. We need to export to fast growing economies like China, and attract more investment to our shores. Debt issuance story Joint Leads: Bank of China, HSBC Bank, Standard Shattered. The proceeds will be used to finance the UK s reserves which are held in the government s Exchange Equalisation Account, which include financial assets denominated in foreign currencies, gold and International Monetary Fund Special Drawing Rights. It is the first ever non-chinese issuance of sovereign RMB debt and the largest ever non- Chinese RMB bond issued on the London Stock Exchange.

Case Study China Development Bank issues 1.56bn dual-currency bond to finance project investments in Europe Company Market Sector Rating Company Details China Development Bank PSM Financials Aa3/AA- Transaction Details Issue Date 12 Oct 2015 Issue Size USD 1billion / EUR 500 million Yield at issue 2.6% / 0.875% Maturity 5 years / 3 years Company profile Debt issuance story China Development Bank (CDB) is one of the largest development financial institutions in the world and the major bank that provides medium and long term financing and investment services in China and in promoting development elsewhere in the world. As at the end of the 3rd Quarter of 2015, CDB s total assets reached RMB11.4 trillion and ranked No. 87 among Global Fortune 500. Mr. Hu Huaibang, Chairman of CDB said that CDB recognised London as a key global financial centre. He believes that London's depth of financial activities, vigour and comprehensive infrastructure will create a conductive environment for deeper corporation between China and the UK. Joint Leads: Bank of China, BOCOM Hong Kong, BNP Paribas, HSBC, JPMorgan Securities, Standard Chartered. The proceeds for this transaction are primarily to be used to support project investments in Europe. This transaction extends from the UK-China Financial Dialogues, and marks the latest achievement of deeper cooperation between the two countries. In February 2016, CDB was the first Chinese issuer to execute a euro-denominated deal by tapping it is existing 500m and 1bn tranches and pushing the total amount raised to 2.1 bn.

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