Photo: Gary Todd / Wikimedia Commons, CC0
China plans to sell up to 4 billion yuan in green sovereign bonds in Canada, its Ministry of Finance said Thursday.
The ministry said in a statement on its website that the State Council, China’s cabinet, has approved the offering. The sale is planned for the week of Monday, November 9, and detailed arrangements will be announced before the bonds are issued.
What green sovereign bonds are
Green sovereign bonds are loans to a national government, repaid with interest, where the money raised is earmarked for environmental projects such as clean energy or pollution control. “Sovereign” means the borrower is the state itself, in this case China.
A planned sale, not a completed one
The 4 billion yuan figure is the maximum size of the planned offering, not an amount already raised. The ministry described a planned issuance, not a completed sale. It did not disclose the bonds’ maturity dates, interest rates, investor demand or expected pricing.
What it means for investors in Canada
For investors in Canada, the sale offers another route to buy Chinese government debt directly in the yuan, China’s currency, rather than in U.S. or Canadian dollars. That means the investment’s value moves with the yuan as well as with the bonds’ own price.
JBizNews Desk | Beijing
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