The Ministry of Finance issued sovereign bonds worth five billion yuan in Macau yesterday, according to a statement by the Macau Monetary Authority (AMCM).
Yesterday’s issuance was the fourth time that the central government has issued sovereign bonds in Macau, after the first, second and third ones in July 2019, September 2022 and September last year.
According to the statement, the renminbi-denominated sovereign bonds issued in Macau yesterday comprised two-year-maturity bonds worth three billion yuan with an interest rate of 1.83 percent and five-year-maturity bonds worth two billion yuan with an interest rate of 2.05 percent.
“Renminbi” (“people’s currency”) is the official name of the nation’s legal tender, informally known as “yuan”.
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 in 2022.
Last year, the ministry issued sovereign bonds worth five billion yuan in Macau.
Last year was the first time that the central government issued sovereign bonds with a five-year maturity in Macau.
The sovereign bonds issued in Macau last year comprised two-year-maturity bonds worth four billion yuan with an interest rate of 2.4 percent and five-year-maturity bonds worth one billion yuan with an interest rate of 2.68 percent.
Although the total value of this year’s sovereign bonds issued in Macau remains unchanged from last year’s, more of this year’s bonds, which were issued yesterday, are those with a five-year maturity, i.e., two billion yuan, compared to last year when only bonds worth one billion yuan had a five-year maturity.
In yesterday’s statement, the Macau Monetary Authority expressed its gratitude for the Finance Ministry’s “long-standing” support in developing modern finance in Macau.
Unchanged from last year, the sovereign bonds issued in Macau this year are also only available to professional investors, according to yesterday’s statement.
Yesterday’s AMCM statement also said the sovereign bonds issued this time were oversubscribed as they were well-received by investors in the market.
The statement also pointed out that the Ministry of Finance has now cumulatively issued sovereign bonds in Macau worth a total of 15 billion yuan.
This poster provided by the Macau Monetary Authority (AMCM) explains the Finance Ministry’s fourth issuing of renminbi-denominated bonds in Macau yesterday.
