BOC issues US$3b Belt and Road bonds

The Bank of China says its affiliates in 20 countries along the route of the Belt and Road Initiative will play a big role in supporting relevant future project construction.

Bank of China recently issued US$$3 billion's bonds, in six categories, including U.S. dollar, Euro, Australian dollar and Renminbi through its branches and sub-branches in Macao, Dubai, Johannesburg, Sydney and Luxembourg. The funds raised will mainly be used as loans related to Belt and Road projects. 

BOC issued US$4 billion in bonds in June 2015 for the Belt and Road Initiative for the first time. 

The Luxembourg sub-branch issued €500 million in bonds, marking the first time that the BOC has used representative offices in Europe to issue bonds. 

The Johannesburg branch issued the first renminbi bonds in Africa, which received Moody's A1 and Fitch's A rating, showing BOC's recognized strength. The Sydney branch's five-year bond involves the longest period for a bond in Australian dollar issued by Chinese financing agencies. 

According to BOC, foreign central banks and fund management companies have become main investors of the bonds for the first time. Among the investors for the bonds issued in Euros, 79 percent are from Europe, with over subscription reaching four times of the original issuing amount. The two figures are both historical highs.