South Korea’s panda bond gained bids for five times the paper on offer in a deal denoting another step in China’s efforts to widen the pool of investment products for domestic investors and internationalize the renminbi.
The Asian country sold Rmb3 billion ($464 million) in three-year notes at 3%, the tight end of its projected 3% to 3.5% range. Such bonds are renminbi-denominated bond sold by foreigners into Chinese markets.
The panda market is now considered an alternative to dim sum issuance. This year, firms have sold a total of Rmb7 billion in panda bonds, previously Rmb 6 billion.
Finance Vice Minister Choi Hee-nam said SoKor was honored to have been the first country to sell such a debt as it signifies a vital benchmark for Korea and future issuance.
The material has been provided by InstaForex Company – www.instaforex.com