First RMB-denominated bond in Kazakhstan listed on AIX Belt and Road Market
Astana International Exchange has announced that the first RMB (Chinese Yuan) Bond, or “Falcon Bond”, of the China Construction Bank Corporation Astana Branch (CCB Astana Branch), has been listed on AIX and the Hong Kong Exchange effective from March 20, 2020, Strategy2050.kz reports with reference to the press service of the AIFC.
The bond, maturing in March 2022, in the amount of 1 billion CNY (about 63 bn KZT), is denominated in RMB (Chinese Yuan) with an interest rate of 2.95% per annum. The RMB bond is available only for professional investors. The RMB funds raised will be used to support general corporate purposes concerning local infrastructure projects and Belt & Road Initiative projects in Kazakhstan.
“The listing of China Construction Bank RMB bond is an important outcome of the Kazakhstan-China financial cooperation under the framework of the Belt & Road Initiative. It is a significant milestone and will promote the offshore RMB market development in AIFC, Kazakhstan and Central Asia”, AIFC Governor, Kairat Kelimbetov, noted.
CEO of AIX, Tim Bennett, stated that AIX welcomes the listing of the first RMB bond on AIX which is also the first RMB product of the AIX Belt & Road Market.
“This issue is an innovative model of financing Belt & Road Initiative projects which will contribute to the development of the local economy and create new job opportunities”, he said.
SEO of CCB Astana Branch, Wang Songhua said: “As the first operating institution of CCB in Central Asia，China Construction Bank Corporation Astana Branch successfully launched the first RMB Bond, or “Falcon Bond” under the strategic cooperation framework of our two countries. CCB Astana Branch will work with AIFC and AIX on building the offshore RMB centre which implement the joint communiqué issued after bilateral talks between President Xi Jinping and President Kassym-Jomart Tokayev outlining the promotion of bilateral local currency settlement jointly by China and Kazakhstan”.
AIFC has been aiming to become the RMB clearing and settlement regional center in Kazakhstan, where the Belt & Road Initiative was first announced in 2013, as well as in the region.
AIX Belt and Road Market is the key part, where RMB securities, including bond, equities and other products can be listed and traded. AIX is expecting more RMB issuances from diversified issuers which will contribute to establish AIX as the RMB securities listing and trading center for Central Asia.
CCB Astana Branch, the first foreign commercial bank’s branch registered under AIFC jurisdiction, has been appointed as RMB clearing bank in AIFC in 2019.