Hungary issues bonds in China

Hungary has become the latest country to enter the Chinese onshore capital markets, raising Rmb 1 billion in a three-year panda bond, the Financial Times reports. The deal makes it the first country to have issued both offshore and onshore renminbi-denominated debt.

AS the paper explains, Panda bonds are renminbi-denominated debt sold onshore in China, as opposed to dim sum bonds which are offshore renminbi-denominated debt.

The Financial Times also quotes György Barcza, the chief executive of Hungary’s Government Debt Management Agency, as saying that his country wanted to expand its investor base and take advantage of the significant volumes of capital seeking deals in the Chinese market.