Linklaters guides RMB3bn sovereign bonds issue in Macau

Linklaters guides RMB3bn sovereign bonds issue in Macau

Linklaters’ leading partner William Liu advised China’s Ministry of Finance on issuing RMB3 billion (USD431 million) worth of notes in Macau in the second issuance of RMB sovereign bonds in the city since 2019.

It is also the first government notes cleared by the Macao Central Securities Depository and Clearing (MCSD).

The transaction has been listed on the Chongwa Financial Asset Exchange, comprising a 2.2% RMB2 billion two-year bond and a 2.28% RMB1 billion three-year bond.

The issuance of RMB sovereign bonds “will help to further expand the scope of investors, enhance the attractiveness of Macau’s bond market, promote the construction of Macau’s bond market, support the development of Macau’s RMB market, stimulate the moderate diversification of Macau’s economy, and further strengthen the co-operation between the mainland and Macau”, the Ministry of Finance said.

Developing an offshore bond market has been part of Macau’s strategy to achieve a more diversified economy apart from the gambling sector.

The MCSD, which mainly provides securities registration, clearing, settlement and depository services, was launched at the end of 2021, boosting the security and validation of Macau’s bond market infrastructure.