China policy lenders to issue 15 bln yuan in bonds offshore

[BEIJING] China's top economic planning agency approved two policy lenders - China Development Bank Corp (CDB) and Agricultural Development Bank of China - to issue renminbi-denominated bonds offshore, the National Development and Reform Commission (NDRC) said on Tuesday.

CDB, the country's biggest policy lender and responsible for funding large infrastructure investment, has been approved to issue 5 billion yuan (S$1.1 billion) in yuan bonds in Taiwan, the NDRC said.

Reuters reported in June that Chinese regulators would allow mainland financial institutions to directly issue bonds in Taiwan, in another step towards deepening the pool of offshore yuan in Taiwan and to reinforce financial relationships between Beijing and Taipei.

Taipei Exchange Chairman Wu Soushan told Reuters in June that Taiwan's yuan bond market will likely reach 35 billion yuan in 2015, above the 30 billion yuan forecast earlier.

Agricultural Development Bank, China's major lender for the rural sector, has been approved to issue 10 billion yuan in yuan bonds offshore to fund major water power projects and to support cotton, grain and oil purchases and sales, the NDRC said in a separate statement on its website.

It did not specify in which markets the Agricultural Development Bank bonds would be sold.

REUTERS