The sale of the yuan-denominated offshore debt, also known as dim sum bonds, followed Shenzhen’s announcement on Monday of its fourth such issuance, worth up to 7 billion yuan. The latest Shenzhen bond will include a tranche with a 10-year tenure, while also matching the two-, three- and five-year tranches of previous issuances.
Last year, the Shenzhen Municipal People’s Government issued offshore bonds in Hong Kong for the third consecutive year, totalling 5 billion yuan including a green bond and a social bond. In the same year, the Hainan provincial government completed its second issuance in Hong Kong of 5 billion yuan, comprising green, blue and sustainable bonds.
“So far, Guangdong, Shenzhen and Hainan have issued offshore dim sum bonds,” said Samuel Kwok, regional head of APAC international public finance ratings at Fitch Ratings. Their reasons “could be to broaden the financing channel, as well as developing the…
