Chongqing issues first offshore RMB bond

Chongqing Grain Group recently issued an offshore RMB bond through the Development Bank of Singapore and the Agricultural Bank of China according to officials in the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity on July 10.

The one billion RMB ($ 150 million) three-year bond is the first offshore RMB bond issued by the China-Singapore Demonstration Initiative, the third Sino-Singapore demonstration project establishing cooperation in trade and service. The loan interest rate of 4.02 percent is lower than the 4.75 percent rate in the Chinese mainland. It is expected to benefit the Chongqing Grain Group directly and build a bridge to international capital markets thanks to the innovative and favorable RMB polices catering to the pilot area.

The Chongqing Grain Group said the issuance of the offshore RMB bond has widened the company's reach for financing and optimized its capital structure. It can also provide a model of offshore financing for state-owned enterprises.