Bank of China’s bond offering related
to the government’s One Belt One Road (OBOR)
initiative has been denominated in four currencies, divided
into ten tranches and issued out of five branches. It
highlighted the benefits of coordination.
In 2013 the Chinese government introduced its OBOR
policies focussed on investing in and developing the
infrastructure of the former Silk Road – from
Kazakhstan to Moscow and even further afield. The National
Development and Reform Commission (NDRC) released a new action
plan for OBOR in March of this year.
Regional institutions such as the Asian Development
Bank and the new Asian Infrastructure Investment Bank (AIIB)
are expected to be involved in the financing of OBOR-related
infrastructure projects, and China’s biggest
state-owned banks will play a part as well.
The bonds, which all priced on June 24, also marked a shift
in how Chinese banks’ offshore branches issue
debt. "In the...