(Yicai Global) Jan. 9 -- The first public offering panda bonds to support the key areas in the Belt and Road Initiative will be issued soon in the market, online media outlet Szse.cn reported on Jan. 5. China's regulators encourage panda bond issuance to bankroll the Belt and Road projects.
The public offering panda bonds have been pre-examined by the Shenzhen Stock Exchange, approved by the China Securities Regulatory Commission, and will be issued by Iowa China Offshore Holdings (Hong Kong) Ltd. to qualified investors. The corporate bond application limit does not exceed CNY12 billion (USD1.8 billion) with debt rating of AAA.
The raised funds are intended to be used by the controlling shareholder of the issuer, Global Logistic Properties Ltd. [SGX:MCO], to acquire logistics infrastructure assets along the Belt and Road in Europe. Relevant acquisitions will benefit the facilities and trade along the Belt and Road and strengthen cooperation between China and Europe.
A Panda bond is a Chinese yuan-denominated bond from a non-Chinese issuer sold in China. The Shenzhen Stock Exchange will continue to support high-quality issuers from the countries and regions along the Belt and Road, which intend to issue yuan bonds. The raised funds will be used for the construction of the Belt and Road.