The Ministry of Finance priced today a 3-year bond denominated in Chinese yuan - Panda bonds - maturing on October 15, 2024. The nominal value amounted to RMB 3bn, yielding 3.20% p.a. The transaction will be settled on October 15, 2021.

Simultaneously the Ministry entered into a hedging transaction swapping the proceeds into euros to secure future cash flows for the debt servicing costs and the bond redemption. After swap the yield was negative at -0.104% p.a. 

The transaction was done in Chinese onshore interbank bond market based on the issuance program registered by NAFMII (National Association of Financial Market Institutional Investors). The bonds were allocated to Chinese institutional investors. Industrial and Commercial Bank of China, J.P. Morgan AG, Bank of China Limited and China Construction Bank Corporation were the joint bookrunners.