ADB announces third RMB-denominated bond

The Asian Development Bank (ADB) announced Wednesday that it planned to commission two banks to manage the sale of a new renminbi-denominated bond issue, the Wall Street Journal reported. The bond is the latest in the bank’s efforts to help develop China’s debt market. China in 2005 launched a pilot project allowing international agencies to issue bonds in the domestic market, with ADB becoming one of the first foreign issuers of debt in China. The proposed bond will be a 10-year senior unsecured issue, though the bank did not detail the size of the offering. Many hope that the bond will set a precedent for other foreign issuers looking to enter China’s bond market. Previous debt offerings have been discouraged by tight capital controls and currency-related restrictions. In September, China’s central bank allowed international development agencies to transfer the proceeds of their renminbi-denominated bonds offshore.