Canada’s British Columbia has issued 2.5 billion yuan (US$410 million) of offshore yuan-denominated bonds, becoming the first foreign government to tap the so-called CNH debt market, the provincial finance ministry said in a statement Tuesday. The one-year notes were priced at 2.25 percent, with the proceeds reinvested in a matching CNH investment, the statement said. The deal helps “diversify the government’s investor base, access new sources of global liquidity, and increase financial and economic ties with China and the Asia Pacific”. Nearly 60 percent of the issue was bought by Asian investors and 40 percent by US investors. Central banks and official institutions accounted for 62 percent of the sale and private sector funds made up the rest, the statement said.
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