RMB sovereign bonds to be issued
June 14, 2012
The Ministry of Finance announced today the Central Government will issue renminbi sovereign bonds totalling RMB23 billion in Hong Kong.
Financial Secretary John Tsang welcomed the move, saying: "This round of bond issuance demonstrates clearly the Central Government's support for Hong Kong's development as an offshore renminbi business centre."
The institutional tranche of the issuance, totalling RMB15.5 billion, will be issued through the bond-tendering platform of the authority's Central Moneymarkets Unit.
The Central Government also announced a new channel of issuance, totalling RMB2 billion, for central banks and monetary authorities outside China through placement.
The Monetary Authority will establish a new HKMA CMU Central Bank Placement Co-ordinating Window for central banks to subscribe to the bonds. Bonds issued through it will bear the same coupon rate as the successful tenders of the same tenor.
The authority’s Deputy Chief Executive Peter Pang said the authority is delighted to continue to provide the tendering platform for the issuance of offshore renminbi sovereign bonds.
"The establishment of the new HKMA CMU Central Bank Placement Co-ordinating Window will further promote the development of Hong Kong's renminbi bond market by expanding the investor base to include central banks and monetary authorities, and consolidate the role of Hong Kong as the global hub for offshore renminbi business."