The British Columbia government has successfully debuted a 2.5 billion renminbi (C$424.4 million) bond in the Offshore Renminbi Market (CNH).
The issue is a "dim sum bond" – a bond denominated in Chinese currency.
B.C.'s issue represents the largest bond issue from outside of greater China, and the largest CNH issue from an AAA issuer. B.C. is the first foreign government to issue bonds into the CNH market.
"As one of the few AAA-rated issuers in the Renminbi market, we expect B.C. bonds would be attractive to investors looking for a safe place to invest," HSBC Bank Canada said in a statement.
"Global demand for the province's government debt issues had increased in recent years, due in part to B.C.'s stable economic and fiscal performance compared with the U.S. and much of Europe."
In addition to being denominated in Chinese currency, a dim sum bond is issued in Hong Kong. China restricts foreign investment in domestic Chinese debt, so the bonds provide a way for foreign companies to invest in yuan-denominated assets.
By issuing the bond, B.C. is seeking to access global financing and strengthen its economic ties with China, according to HSBC.
Moody's Investor's Services reaffirmed B.C.'s triple-A credit rating this September.
The B.C. government has been working on the bond issue for a year.
