China to Issue Sovereign Bonds in Canada

Announcement comes as Chinese vice premier visits Canada

China to Issue Sovereign Bonds in Canada

TL;DR

  • China will issue its first yuan-denominated sovereign bonds in Canada this week.
  • The issuance will be up to 4 billion yuan (CA$846 million) in sovereign green bonds.
  • The move aims to expand the international reach of the Chinese currency.
  • China seeks to create an alternative to the U.S. dollar in trade.
  • Proceeds from the green bonds will fund environmentally beneficial projects.
  • Chinese Vice Premier He Lifeng is visiting Canada for talks on closer ties.