Poland is set to become the first European nation to issue yuan-denominated debt in China.

 

波兰将成为首个在中国发行人民币债券的欧盟国家。

 

Poland's Ministry¹ of Finance has signed a deal with the Bank of China to issue 3-billion yuan (452 million U.S. dollars) worth of panda bonds on the mainland over the next 3-years.

 

This follows a visit to Poland by Chinese President Xi Jinping last week.

 

Panda bonds are yuan-denominated debt sold by foreign countries and overseas agencies in China. 

 

Since their first launch in 2005, more than 30-billion yuan worth of panda bonds have been issued.

 

Wang Jun with the China Center for International Economic Exchanges says panda bonds are becoming popular for a number of reasons.

 

"The International Monetary² Fund included the Renminbi into its Special Drawing Rights basket of currencies last year, becoming a catalyst³ for the booming panda bond issuance. The market liquidity⁴ in China has remained solid in recent years, with lower bank reserve requirement ratios and interest rates, which has made the Chinese market more competitive in terms of financing costs. For bond issuers, this means more financing channels and optimized⁵ financing structures, as well as a diversification⁶ of investors⁷."

点击收听单词发音