One of China’s three policy banks has just made its return to the country’s interbank dollar bond market following a hiatus of six year.
China Development Bank (CDB) raised USD$2 billion via an issue of one-year US dollar-denominated bonds on China’s interbank bond market on 3 June – its first such issue in six years.
Underwriters for the issue included Bank of China, China Construction Bank, China Merchants Bank, Shanghai Pudong Development Bank, Bank of Beijing, Bank of Jiangsu, Bank of Ningbo, HSBC and Standard Chartered.
State-owned media said that the issue “not only expands foreign currency fund-raising channels for China Development Bank, it also provides diversified foreign currency investment products for domestic institutions, and has been enthusiastically welcomed by the market.”
“For many years China Development Bank has actively participated in the development of the domestic foreign currency bond market, using both domestic and overseas market resources to better serve the development of the real economy using low-cost funds” said a CBD executive.
“The next step will be for the China Development Bank to continue to research bond market product innovations, continually enrich bond market product types, and actively drive the interconnection and high-quality development of the bond market.”