BEIJING, CHINA –The Province of British Columbia, Canada, is the first foreign government to issue bonds into the Chinese Renminbi (CNH) market, opening doors to new investors and raising British Columbia’s profile in the Asia Pacific, British Columbia Finance Minister Michael de Jong announced today.
The issue of the one-year-term bond priced at 2.25 per cent raised 2.5 billion RMB, or about $428 million Canadian (1CAD : 5.8411 RMB), is the largest CNH bond by a foreign issuer to date. The Province immediately reinvested the proceeds in a matching and secure CNH investment, resulting in a positive return and protecting against foreign exchange risk.
The Province’s CNH issue received a positive response from investors around the world. Investors showed a strong appetite for the bond, and the issue was quickly over-subscribed. Nearly 60 per cent of the issue was bought by investors from Asia and 40 per cent by US investors. Central banks and official institutions bought 62 per cent of the issue, with the remainder
bought by private sector funds.
Please click the following link for full news release: BC Renmimbi bond issue Nov 2013
CBC story on this news: http://www.cbc.ca/news/business/b-c-to-issue-chinese-denominated-bonds-1.2356019