The Bank of China Turkey Inc., the Turkish subsidiary of the Bank of China, said that it has been assigned to issue Chinese-yuan denominated bonds, the bank's General Manager Ruojie Li said. Turkey is carrying out intensive studies so that the process can be successfully completed this year.
Ruojie Li assessed the objective "to open the Chinese market in foreign borrowing" mentioned in the 100-day presidential action plan.
Ruojie Li pointed out that the Bank of China has been assigned as the leader issuer and one of the co-leader contractors for bond issuance in Chinese yuan, which has been planned for the first time by the Turkish Ministry of Treasury and Finance. "Work to successfully complete the transaction in 2018 is being intensively carried out by our bank and other co-leader contractors with the intent to develop mutual relations and financial cooperation between Turkey and China," he added.
The Treasury took action in February to investigate the possibility of issuing bonds in the Panda market. In this context, the Bank of China, HSBC and ICBC had been authorized to investigate bond issuance opportunities as part of the 2018 external financing program. Assets that foreign institutions issue in yuan in China to meet their financing needs are called "Panda Bonds."
Especially after the recognition of the Chinese currency the yuan increased in the international market and President Xi Jinping announced the Silk Road project in 2013, interest in Panda bonds has boomed. The size of these bonds reached $24 billion as of May this year. On the other hand, China has the world's third-largest bond market and continues to grow rapidly. The size of the market has reached $12 trillion.