World Bank to issue SDR Bonds in China

World Bank to issue SDR Bonds in China

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.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

Latest posts by HEFFX Australia (see all)