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Panda bonds

From Wikipedia, the free encyclopedia
Panda bonds
Traditional ChineseHùng miêu trái khoán
Simplified ChineseHùng miêu trái khoán

APanda bondis a Chineserenminbi-denominatedbondfrom a non-Chinese issuer, sold in thePeople's Republic of China.[1]The first two Panda bonds were issued in October 2005 on the same day by theInternational Finance Corporationand theAsian Development Bank.Their terms were 1.13 billion yuan of 10-year bonds at a 3.4% yield and 1 billion yuan of 10-year bonds at a 3.34% yield.[2][3]TheChinese governmenthad been negotiating for several years about implementation details before permitting the sale of such bonds; they had been concerned about the possible effects on theircurrency peg.Eventually, it was agreed that funds raised from sales of Panda bonds would have to remain in China; issuers would not be permitted torepatriatesuch funds.[2]Unlike thedim sum bond,pandas bonds are issued in the onshore market for onshore RMB.

In May 2010, rules were liberalised and more issuers were allowed, with the restriction on proceeds not being remitted abroad lifted.[4]

In June 2016, Bank of China has signed a Memorandum of Understanding on panda bonds issuance with Poland's Ministry of Finance, making Poland the first European sovereign government to issue such bonds.[5]

In March 2018, the Philippines issued its inaugural renminbi-denominated bonds or Panda bonds. The Philippines became the first Association of Southeast Asian Nations member to issue Panda bonds.[6]The Treasury bureau of the Philippines has said that regulatory approvals are the only remaining for the issuance of three-year and five-year panda bonds — renminbi-denominated debt sold in China by a foreign issuer.[7]

See also

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References

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  1. ^Zhang, Jinghong (2005-09-29)."Hùng miêu trái khoán phát hành nhân dân tệ khu vực hóa mại xuất trọng yếu nhất bộ (Issuance of Panda bonds an important stride towards the regionalisation of the renminbi)".Xinhua News Agency. Archived fromthe originalon February 9, 2006.Retrieved2007-07-06.
  2. ^abAreddy, James T. (2005-10-11)."Chinese Markets Take New Step With Panda Bond".The Wall Street Journal.Retrieved2007-07-06.
  3. ^"ADB, IFC mark inaugural Panda bond issue".People's Daily. 2005-10-19.Retrieved2007-07-06.
  4. ^"'Panda' Bond Sellers Authorized to Send Money Home by China Government ".Bloomberg. 2010-09-30.Retrieved2011-09-29.
  5. ^"Poland to issue $455m panda bonds in China - Business - Chinadaily.com.cn".www.chinadaily.com.cn.Retrieved2016-06-22.
  6. ^"Philippines plans to issue 1-bln-USD Samurai bond - Business - Xinhuanet.com".www.xinhuanet.com.Archived fromthe originalon June 19, 2018.Retrieved2018-06-19.
  7. ^"PH to pitch panda bonds, 'Build Build Build' in China".Retrieved2018-06-19.
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