World Bank to Issue SDR Bonds in China
China’s central bank (PBOC) said Friday that it allowed a division of the World Bank (WB) to issue bonds denominated in special drawing rights (SDR) in the country’s interbank bond market.
The International Bank for Reconstruction and Development was approved to issue bonds worth 2 billion SDR (US$2.79-B), according to the People’s Bank of China website.
Chinese RMB Yuan will be the currency of settlement.
The 1st batch of bonds will be put on the market “soon.”
Interbank debt denominated in SDRs will diversify investment portfolios both in China and abroad.
The inclusion of RMB Yuan in the SDR will take effect in October.
Industrial and Commercial Bank of China (ICBC), the country’s largest bank by market value, will be the lead underwriter for the issue.
These will be the 1st bonds denominated in the SDR since Y 1981.
Have a terrific weekend.