Guangdong will issue offshore provincial government bonds in Macau later this month, according to a statement by the Macau Government Information Bureau (GCS) on Tuesday.
The statement pointed out that the upcoming issuance will be the third issuance of offshore bonds by the Guangdong Provincial People’s Government in Macau, after the first and second ones in October 2021 and October 2022 respectively.
The statement said that by the end of this month, the Guangdong government will issue two tranches of offshore renminbi-denominated provincial government bonds in Macau, with an expected issuance size of two billion yuan. The statement said that one of the two tranches will have a two-year maturity, while the other will have a three-year maturity that has been designated as “green” bonds.
“Renminbi” (“people’s currency”) is the official name of the nation’s legal tender, informally known as “yuan”.
As in the last two years, the bonds this year will also only be offered to institutional investors, according to the statement.
The statement underlined that the preparation work for the upcoming issuance has been jointly supported by the Ministry of Finance and the Guangdong Provincial People’s Government.
The statement did not reveal the upcoming bonds’ interest rate.
The statement noted it will be the first time Guangdong government has issued green bonds in Macau.
In 2021, the Guangdong government issued offshore provincial government bonds worth 2.2 billion yuan in Macau with a three-year maturity and an interest rate of 2.68 percent, while last year bonds worth two billion yuan with a three-year maturity and an interest rate of 2.65 percent were issued here.
