One of China’s big three policy banks has raised greenback funds via an issue of two year bonds on the Chinese interbank market.
On 13 June Exim Bank of China raised USD$1 billion in US dollar bonds on the national interbank market. The instruments have a term of two years and a coupon rate of 0.6%.
The Chinese central bank’s official media outlet said that the issue enjoyed the strong support of the Shanghai Clearing House and was underwritten by both Chinese and foreign-invested banks.
“The successful bond issue further clears out channels for domestic financing on the foreign currency bond market and enriches the supply of foreign currency investment products…it has positive significance for improving the domestic dollar bond yield curve and and driving the growth of the domestic foreign currency bond market.”
Exim Bank said that in future it would “continually provide high-quality domestic foreign currency investment products, drive the normalisation of foreign currency bond issuance domestically, and use substantive actions to drive the high-quality growth of the domestic foreign currency bond market.”