Poland has become the first European country to issue government debt into China’s mainland bond market, with a bond of 3 billion yuan ($452 million), marking a significant milestone for renminbi’s growing use internationally, which builds towards its reserve currency status.
The three-year bond has a yield of 3.4 percent. Bank of China and HSBC are joint book-runners and joint lead underwriters. The bond issuance came against the context of renminbi’s imminent inclusion in the International Monetary Fund’s basket of special drawing rights currencies in October.
The IMF’s SDR is an international reserve asset, in the form of a currency basket which the renminbi will join in October to sit alongside the dollar, euro, sterling and yen. It is the major alternative currency to the US dollar, which dominates international foreign exchange transactions.
Full article: Poland first in Europe to issue RMB debt in China (GEAB)