China Development Bank to sell $5.28bn in bonds
China Development Bank, a policy lender supporting state projects, has announced it intends to sell $5.28bn of debt for offshore investors to buy in bonds through the “bond connect” programme. The bonds sold will have a maturity of 1-10 years.
According to the South China Morning Post, Zhang Xuguang, vice president of China Development Bank stated: “The bond connect mechanism promotes the allocation of yuan-denominated assets by global investors, expands the offshore use of the renminbi and pushes forward the orderly opening up of China’s capital markets… the achievements are conspicuous.”
The ‘Bond Connect’ initiative is a mutual market access scheme allowing investors from mainland China as well as overseas to trade in each other’s bond markets, having come into effect from July 2017.
The bond sale was announced by the China Securities Journal on Sunday and global coordinators will be Bank of China, Credit Agricole and Ping An Securities.