China Development Bank eager to help Belarus float Panda bonds

14 June 2018

MINSK - The China Development Bank (CDB) is interested in floating Belarus’ sovereign bonds in the form of Panda bonds in China’s domestic financial market, the Belarusian Embassy in China said in a message posted on its official web site.

Chief of the CDB Representative Office in Minsk Li Dounya mentioned this at a meeting with Valentin Bobrovich of the Belarusian Embassy in China.

The parties discussed the scope of activities of the CDB Representative Office in Minsk, and new mechanism of cooperation between the China Development Bank and Belarusian partners. In particular, the China Development Bank confirmed its commitment conducting joint financial activities, including the investment forum in the Province of Hainan in Oct 2018.

As previously reported, Belarus plans to receive a sovereign credit rating from China Chengxin International Credit Rating Co. Ltd. (CCXI) and place state bonds in the Chinese financial market.

In June 2018 Belarus’ Finance Ministry and the CCXI signed an agreement to assign a credit rating to Belarus, which will create an opportunity for Belarus to place state bonds in the Chinese financial market.

The People’s Bank of China has already given the green light to Belarus’ Panda bond initiative.

Panda bonds are floated in China’s domestic debt market in Chinese yuan, which became a reserve currency of the International Monetary Fund (IMF) and therefore Belarus is free to use revenues from Panda bond placement for replenishing reserves.

The China Development Bank opened its Representative Office in Minsk on Jun 5, 2018.

Ministry of Foreign Affairs of the Republic of Belarus