| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers W > Headlines for World Bank (International Bank for Reconstruction and Development) > News item |
World Bank to issue $2.8 billion of SDR-denominated bonds in China
By Susanna Moon
Chicago, Aug. 12 – World Bank (International Bank for Reconstruction and Development) said it will issue about $2.8 billion of bonds denominated in special drawing rights (SDR) in the Chinese market.
World Bank obtained approval for its inaugural issue from People's Bank of China, according to an announcement.
The World Bank's new issue program will be about 2 billion SDRs, which is equivalent to about $2.8 billion.
The bonds will be denominated in SDRs and payable in Chinese renminbi, the release noted.
SDRs are an international reserve asset created by the International Monetary Fund in 1969 to supplement its member countries' official reserves. The value of the SDR is currently based on four major currencies: the dollar, euro, Japanese yen and British pound. The Chinese renminbi will join the SDR basket of reserve currencies on Oct. 1, 2016.
The timing of the issue and bond terms will be based on market conditions.
"This is a landmark development for China's bond market and for the SDR as an international reserve asset," World Bank group president Jim Yong Kim said in the press release.
"We are very pleased to support China's growing role in global financial markets. World Bank issuance of SDR bonds in China will support the G-20's objective of expanding the use of SDRs and help promote the development of China's domestic capital market.
“It will also increase Chinese investors' access to foreign currencies in the domestic bond market, while opening up new opportunities for international investors seeking high-quality investment products in the country."
World Bank (Aaa/AAA) is based in Washington, D.C.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.