BOC OBOR bond streamlines issuance for Chinese banks

Author: Ashley Lee | Published: 2 Jul 2015

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...