China's central bank approved the issuance of 10-year yuan-denominated "panda bonds" from the Asian Development Bank and the World Bank's International Finance Corp, making them the first international financial institutions to issue such bonds locally, The Wall Street Journal reported. The ADB may issue RMB1.0 billion in bonds and the IFC may issue RMB1.13 billion on the interbank market, where the bonds would be traded, according to statements posted on the central bank website. The central bank did not say when the bonds would be issued or how the interest rates would be set. Opening the bond market to foreign investors will help China develop an alternative source of funding for companies that traditionally have relied on bank loans.
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