The first RMB (Chinese Yuan) Bond of the China Construction Bank Corporation Astana Branch has been listed on Astana International Exchange and the Hong Kong Exchange March 20th, 2020. The bond, maturing in March 2022, in the amount of 1 billion CNY (about 63 billion tenge and over US$137 million), is denominated in RMB with an interest rate of 2.95% per annum. The RMB bond is available for professional investors. The RMB funds raised will be used to support local infrastructure projects and Belt and Road Initiative projects in Kazakhstan.
“The listing of China Construction Bank RMB bond is an important outcome of the Kazakhstan-China financial cooperation as part of the Belt and Road Initiative. It is a significant milestone and will promote the offshore RMB market development in AIFC, Kazakhstan and Central Asia,” AIFC Governor, Kairat Kelimbetov, noted.
Astana International Financial Center aims to become the RMB clearing and settlement regional center in Kazakhstan, where the Belt and Road Initiative was first announced in 2013. AIX Belt and Road Market is the key part, where RMB securities, including bond, equities and other products can be listed and traded. AIX is expecting more RMB issuances from diversified issuers which will contribute to establish AIX as the RMB securities listing and trading center for Central Asia.