Biz Scene: Grapevine

Bank deal

Citibank and HSBC completed the first offshore yuan forward rate agreement (FRA) on Tuesday, Reuters reported citing banking sources.

The FRA will start three months from now and will last another three months, paying a fixed interest rate of 3.9 percent. The floating leg will use three-month Shanghai Interbank Offered Rates as the reference rate. The size of the deal was not immediately known.

The sources said the deal appeared to be in preparation to take part in China's onshore FRA business, scheduled to kick off in November.

Ming Fai IPO

Ming Fai International Holdings, a Hong Kong-based maker of toiletries such as shampoo and soap for travel kits, is seeking up to HK$700 million from its initial public offering this month, South China Morning Post reported citing unnamed sources.

The company may value its shares at 12 to 15 times this year's forecast earnings, sources said. It started meeting investors on Monday and will set the indicative price range on Friday.

Trading is scheduled on November 2. DBS Capital is the sole bookrunner of the deal.

(China Daily 10/11/2007 page15)