HSBC welcomes the launch of the Orchid bond structure in Singapore announced today by Singapore Exchange (“SGX”) and Euroclear Bank (“Euroclear”).1 Orchid bonds combine domestic bond issuance with global distribution channels.
HSBC supported SGX and Euroclear as Arranger Bank, Custodian and Issuing Paying Agent in structuring the flow of the Orchid bonds for potential issuers.
Gavin Powell, Head of Global Markets, HSBC Singapore: "Current market infrastructure must adapt to keep pace with a highly digitised and international investor community. Technology is the key to unlocking greater market access. We are pleased to have supported SGX and Euroclear in taking this step forward; another demonstration of collaboration enabling greater opportunities.”
International investors will be able to purchase bonds issued by Singapore-based issuers directly on SGX’s wholly-owned subsidiary, The Central Depository (CDP) via Euroclear, and will benefit from real-time, multi-currency delivery versus payment (DVP) settlement with any counterparty within Euroclear’s network. SGX and Euroclear will look to extend the offering beyond Singapore to other regional issuers.2
The addition of the Orchid bond structure to SGX allows market participants to utilise SGX as a one-stop issuance, listing and distribution platform for regional issuance.
Mr. Powell continued: “Orchid bonds will provide Singapore issuers with an alternative option to market their debt. We are excited by the possibilities this offers issuers who are seeking diversified funding sources and deeper liquidity pools, and for international investors hungry to pursue wider investment options.”
As Asia’s pre-eminent Bond House, HSBC has led a number of significant transactions to transform current market infrastructure, including completing the first digital bond issuance.3
For further information: SGX AND EUROCLEAR BANK TO LAUNCH ORCHID BOND STRUCTURE
HSBC Group’s history in Singapore dates back to 1877 when its founding member, The Hongkong and Shanghai Banking Corporation Limited, opened its first branch on the island. A qualifying full bank, HSBC in Singapore offers a comprehensive range of banking and financial services including retail banking and wealth management; commercial, investment and private banking; insurance; forfaiting and trustee services; securities and capital markets services. One of the earliest banks to establish in Singapore, HSBC today is a prominent player in Singapore's financial services sector serving the banking needs of multi-national corporations, home-grown businesses, private banking clients, institutional and retail customers. In May 2016, HSBC locally incorporated its retail banking and wealth management business in Singapore and established, HSBC Bank (Singapore) Limited. HSBC Singapore has a retail network of 13 branches (comprising 10 dedicated HSBC Premier Centres, 2 HSBC Jade Centres and a Premier International Centre) and many locations across the island providing self-service terminals.
1 Press Release: SGX and Euroclear Bank to launch Orchid bond structure, 18 February 2021
2 Press Release: SGX and Euroclear Bank to launch Orchid bond structure, 18 February 2021