LGFVs ready offshore bonds as BOC goes green

A trio of Chinese local-government financing vehicles LGFVs are lining up debut offshore bonds as market conditions stabilise following the UK’s Brexit vote.

Chongqing Nan’An Development, Yunnan Metropolitan Construction Investment Group and Huai'An Development are all in the final stages of readying transactions.

So too is Bank of China, which looks set to bring its own debut green bond within the next day or two.

The transaction is likely to represent a new marker for both the green bond market and red bond market since the renminbi tranche will be handled by BOC's branch in New York, a city that has...