Bank of China pioneers SOFR lending in Asia

In absence of term rate, lender uses daily compounded backward-looking rate

Bank of China Tower, Hong Kong
Bank of China Tower in Hong Kong

A subsidiary of Bank of China has provided financing to a corporate client benchmarked to the new US risk-free reference rate, becoming the first financial firm to issue securities linked to SOFR in Hong Kong or China.

The bank made a 90-day US dollar trade finance loan to a corporate client in August and issued two-month US dollar commercial paper to another bank, pegging both transactions to SOFR. Bank of China’s Hong Kong arm did not disclose the identity of the client or counterparty bank,

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: