KUALA LUMPUR (Oct 31): CIMB Group Holdings Bhd (KL:CIMB) said on Friday it has issued its first ever renminbi-denominated bonds in China on the back of robust demand from investors.

The three-year "panda bond" raised three billion yuan (RM1.77 billion) and was priced to carry a fixed coupon rate of 2.18%, the second-largest Malaysian bank said in a statement. Orders from institutional investors exceeded available demand by 1.64 billion yuan, CIMB Group said.

"We are pleased to see strong demand from investors for our issuance,” said chief executive officer Novan Amirudin. "It reflects the confidence in CIMB’s diversified Asean franchise and financial strength."

The bond was the largest single-tranche issuance in China’s Interbank Bond Market by a Malaysian firm to date. The coupon rate was also the lowest on record secured by an Asean issuer.

Issued by its unit CIMB Bank Bhd, the bond was rated AAA by China Chengxin Credit Rating Group. 

Proceeds from the issuance have been earmarked mainly to expand its local and cross-border businesses, with a portion retained in China to support business development there.

"This significant milestone reinforces CIMB’s role as a bridge between China and Asean, adding momentum to our efforts to accelerate financial integration and promote cross-border investment and trade," Novan added.

CIMB Group collaborated with a consortium of 11 Chinese, regional and international financial institutions for the issuance.