Standard Chartered Bank Hong Kong has completed the first CNH Hibor fixing interest rate swap transaction.
Taking place with a Hong Kong-based corporate client, the IRS is structured using the new three-month CNH Hibor fixing as the pricing benchmark over the next 12 months. The bank says, in doing so, clients have limited interest risk, and therefore greater certainty of exposure.
According to the bank, there has been increased demand and interest from clients to limit their interest rate risk ad more corporates conduct trades in the RMB.
John Tan, head of global markets, Hong Kong at StanChart, says, “This pioneer transaction signifies a new way of doing business in the CNH market as the RMB continues its journey of internationalisation. The launch of Hong Kong’s first CNH Hibor fixing interest rate swap supports Hong Kong’s growth as an offshore RMB which provides a reliable and transparent benchmark for the pricing.”