CHINA: BCCL and CFETS ePrime Launches CIBM Northbound Primary Service

Wednesday July 6 2022

On 4^th July 2022, Bond Connect Company Limited (BCCL) and China Foreign Exchange Trade System (CFETS) launched the Northbound primary service for China Interbank Bond Market (CIBM). The service allows offshore investors to participate in the Northbound subscription of CIBM new issuances with onshore underwriters through the connectivity between BCCL’s ePrime, a one-stop electronic platform for bond primary deals in the offshore market and the iDeal system of CFETS.

The Northbound primary service aims to facilitate global investors to tap the CIBM by providing a primary market investment channel in a more efficient and safer way. Offshore investors can place subscription orders straight into the orderbook of onshore underwriters via ePrime. Onshore underwriters and offshore investors can leverage the digital allocation confirmation ticket embedded in the service and get rid of the tedium in signing distribution agreements manually.

The service was launched smoothly attracting 36 offshore investors to sign up ePrime. Among them, 27 offshore investors were the first to participate and have completed 42 primary transactions, bringing the total subscription amount to 1.22 billion RMB. The subject bonds include policy financial bonds issued by China Development Bank, Agricultural Development Bank of China, and Export-Import Bank of China, green financial bond issued by Xiamen Bank, and super short-term commercial papers issued by Guangzhou Metro and Petro China, etc.

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