Bank Given Green Light to Start Issuing Bonds
Development Bank of China has been given the green light to start issuing and offer of an initial quota of 30 billion yuan in the exchange trade bonds on the Shanghai Stock Exchange. The move strengthens the bank’s capital and further expands the shanghai exchange role in the local bond market.
The upcoming issuance shows that the China Development Bank was become the first domestic lender to be allowed to issue exchange traded bonds and it also marks a big step by regulators in boosting the country’s fixed income market. The quota was approved by the People’s Bank of China along with the China Securities Regulatory Commission.
Furthermore the bank is actively offering a financial linking to key government projects in setting issued with no less than 10 billion yuan of fixed rate bonds in the Shanghai Stock Exchange. The issued bonds will have a two year term and five year maturity. The move also give a fresh fundraising channeled for all lenders that are facing an increase in pressure to replenish their capital after the regulators started to phase in tougher capital rules this year to be in line with the Basel III global standards.