British Columbia has returned to China’s bond market today, ensuring continued access to the third-largest capital market in the world, announced Finance Minister Carole James.
“Raising capital in the Chinese market helps to strengthen our international trade and financial profile,” James said. “Diversifying our financial, trade, and export relationships can translate into jobs here at home for B.C. businesses.”
A Panda bond is a colloquial term used for a bond that raises funds in Renminbi (RMB) denominations from onshore Chinese investors. The Province is issuing a three-year bond for RMB 1 billion, or about C$192.5 million, with the final coupon to be set in the early morning hours of Nov. 22, 2017.
B.C. is the first foreign government to establish a Panda bond program. In 2015, the Province received approval for a 6 billion RMB program, including pre-approved conditions on subsequent bonds to a maximum of 3 billion RMB each, and terms of up to 10 years. The program expires on Dec. 3, 2017.
The joint lead managers for the bond will be the Bank of China and HSBC, which were the leads on the Province’s first Panda bond.
- In the first three quarters of 2017, exports to mainland China from British Columbia grew by 12.7%.
- In the same period, exports to Hong Kong from British Columbia grew by 14.6%.
- In 2016, some of B.C.’s key exports to China include agrifood and seafood products, lumber exports, copper and coal.
- In addition to growing B.C.’s natural resources and agrifood sectors, the Government of B.C. will help to diversify B.C. exports to Asia and China by focusing on technology and innovation in sub-sectors that include digital media and information and communications technology; clean technology; life sciences; aerospace and ocean technologies.