Guangdong to issue another RMB2b in offshore gov’t bonds in Macau

The Guangdong government will issue three-year offshore renminbi-denominated municipal government bonds in Macau tomorrow, with an expected issue size of RMB2 billion.

The Guangdong municipal bonds will be offered to institutional investors and are the second issuance of Guangdong Province offshore RMB-denominated municipal government bonds following their initial issuance in October 2021.

Back in September, the central government’s RMB3 billion worth of renminbi-denominated bonds were listed in Chongwa (Macao) Financial Asset Exchange Co., Ltd. (MOX).

The central government first issued renminbi-denominated bonds with a face value of RMB2 billion in Macau in 2019.

“The MSAR government expresses sincere gratitude to the central government and the Guangdong government for their support,” the SAR government said in a statement. 

To facilitate the development of the bond market, the local government is accelerating the improvement of relevant ‘soft’ and ‘hard’ financial infrastructure including: the optimisation of Macau’s Central Securities Depository (CSD) system and bond market-related regulations; initiating the legislation of securities-related laws and regulations; expanding the financial talent pool; and introducing tax incentives.

In accordance with the SAR Budget for 2022, the preferential policy on exemptions from stamp duty and complementary tax of the related proceeds from bonds issued in Macau will be applicable to this issuance of offshore municipal government bonds by the Guangdong government.