First official Belt and Road domestic bond issued

Hong Kong

THE first official Belt and Road bond in China's domestic market has introduced a new financing instrument for the massive infrastructure initiative but offered few advantages for the issuer.

Hongshi Holding Group, a privately owned cement maker, printed the 300 million yuan (S$62.11 million) three-year corporate bond on the Shanghai Stock Exchange (SSE) on Jan 19. Proceeds are earmarked for the purchase of equipment for a 300 million yuan cement plant in Laos with an expected daily capacity of 5,000 tonnes.