Hungary issues panda bonds for RMB 1 bln
Hungary has issued yuan-denominated "panda" bonds, targeted at the domestic Chinese market, for the value of RMB 1 bln with three-year maturity and a 4.85% coupon, the Government Debt Management Agency (ÁKK) said today, Hungarian news agency MTI reported.
Demand for the bonds at the July 26 auction was double the amount that was accepted. The issue was organized by Bank of China and HSBC.
Hungary has become the first foreign issuer to tap the onshore and offshore markets for yuan bonds; last year it has already sold a three-year RMB 1 bln "dim sum" bond, ÁKK said.
"Dim sum" bonds are issued outside of China but denominated in Chinese renminbi, rather than the local currency.
The Hungarian "panda" bonds were also available to other Asian investors through the so-called "Bond Connect" link between China and Hong Kong, which allows foreign fund managers to trade in Chinaʼs government, agency and corporate debt markets without having to set up onshore accounts.
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