Expect RMB23b sovereign-bond issues in 2H: Government

Renminbi sovereign bonds to be issued twice this year.

In a report, the Ministry of Finance today announced it will issue RMB23 billion in sovereign bonds in Hong Kong this year - RMB13 billion to be issued on June 26 and RMB10 billion in the second half of the year.

Of the RMB13 billion to be issued on June 26, RMB10 billion will be issued to institutional investors using a tendering method on the Monetary Authority's Central Moneymarkets Unit and RMB3 billion to be placed to overseas Central Banks and monetary authorities.

Of the RMB10 billion to be issued in the second half of the year, RMB7 billion will be issued to institutional investors and RMB3 billion to retail investors.

Financial Secretary John Tsang said the Hong Kong Government welcomes the Ministry of Finance's renminbi sovereign bond issue in Hong Kong for the fifth consecutive year.

"Renminbi sivereign bonds will be issued twice this year, more frequently than before, in a move to regularise the issuance programme. This demonstrates clearly the Central Government's determination to make the issuance of renminbi sovereign bonds a long-term institutional arrangement in Hong Kong," he said.

Mr Tsang said the current issuance also offers for the first time renminbi sovereign bonds of a 30-year tenor for institutional investors, extending the benchmark yield curve for renminbi bonds in Hong Kong.

"It will increase the supply of long-term renminbi-denominated fixed-income products for institutional investors, including pension funds. This would be conducive to the Government's objective to develop Hong Kong's bond market."