The city of Shenzhen issued RMB5 billion $775 million of conventional and green bonds in Hong Kong on Tuesday October 12, marking the first time that a Chinese municipality has tapped the offshore renminbi bond market.
Guangdong province subsequently issued RMB2.2 billion in government bonds in Macao.
The transactions will “most definitely pave the way for other municipal governments to follow suit and issue offshore bonds,” Michael Ng, Capital Markets partner at Linklaters told FinanceAsia. Linklaters acted as an advisor to the government on the issuances.
The Guangdong bonds have a 3-year term and a coupon rate of 2.68%....