The central government will issue sovereign bonds worth five billion yuan in Macau next Wednesday, the Ministry of Finance in Beijing and the local government announced yesterday.
The Macau Government Information Bureau (GCS) issued a two-part statement on the matter.
3rd issuance
Next week’s scheduled issuance will be the third issuance of sovereign bonds by the central government in Macau, after the first and second ones in July 2019 and September last year.
The Ministry of Finance issued sovereign bonds worth two billion yuan in the Macau Special Administrative Region (MSAR) in 2019, while bonds worth three billion yuan were issued here last year.
Yesterday’s GCS statement said that the MSAR government welcomes the central government’s decision to issue renminbi-denominated sovereign bonds in Macau “once again”.
“Renminbi” (“people’s currency”) is the official name of the nation’s legal tender, informally known as “yuan”.
“The MSAR government expresses its sincere gratitude to the central government for its long-standing support of the development of Macau’s bond market,” the statement said.
The statement underlined that the “continuous” issuance of sovereign bonds in Macau is an important measure by the central government for its ongoing support for the development of Macau’s modern finance and the city’s appropriate economic diversification.
The statement said that the central government’s continuous issuance of sovereign bonds in Macau will promote the development of a bond market here, which will further enhance the “attractiveness” of Macau’s bond market. In addition, the statement said, this will also promote the development of an offshore renminbi market in Macau.
The issuance of sovereign bonds in Macau will further strengthen financial cooperation between the mainland and Macau, and provide investors with secure and stable investment options, the statement said.
The same as last year, the sovereign bonds will also only be offered to professional investors, according to the statement.
The two-billion-yuan sovereign bonds issued in Macau in 2019 comprised 1.7 billion yuan offered to institutional investors and retail bonds worth 300 million yuan offered to members of Macau’s general public.
‘Good quality’
Speaking to reporters at a public event yesterday, Secretary for Economy and Finance Lei Wai Nong said that the nation’s sovereign bonds are of “good quality”. Lei also said that the third issuance of sovereign bonds by the central government in Macau highlights the fact that the city’s bond market is getting more and more sophisticated.
Lei also said that the local government is aiming to attract more bond issuers and institutional investors to Macau, pledging that it will continue to make good use of the city’s advantages with the aim of linking international capital and the mainland’s ongoing development.
Secretary for Economy and Finance Lei Wai Nong talks to reporters about the central government’s upcoming issuance of sovereign bonds, at Mandarin Oriental Hotel in Nape yesterday.
– Photo: GCS
