The Macao Special Administrative Region (MSAR) Government congratulated the People’s Government of Guangdong Province on the successful issuance of its inaugural offshore Renminbi (RMB) municipal government bond in Macao today (12 October). It also marked the first Mainland municipal government bond issued in Macao. The MSAR Government expressed its gratitude to the Ministry of Finance and the People’s Government of Guangdong Province for their support to Macao’s bond market development.
The bond, offered to institutional investors with an issuance size of RMB2.2 billion, a tenor of 3 years and an interest rate of 2.68%, has provided local and foreign institutional investors with more investment options, as well as opportunities to participate in the economic development of Guangdong Province. This issuance has attracted local and foreign institutional investors from the Mainland China, Hong Kong, Taiwan region, Brazil, Australia and Japan. With an oversubscription of over 3 times, the bond issuance was a resounding success, showcasing that the bond issued this time has met the needs of investors.
This year marks the inauguration of the National 14th Five-Year Plan. Against the backdrop of the integrated development in the Guangdong-Hong Kong-Macao Greater Bay Area, the issuance of this offshore RMB municipal government bond by the Guangdong Province in Macao is not only a new breakthrough for the Guangdong-Macao cross-boundary financial cooperation, but also another major milestone in the development of Macao’s bond market –which comes after the Ministry of Finance’s inaugural issuance in Macao of the sovereign bond in 2019. Deepening and broadening the scope of Macao’s bond market, the issuance reinforces the bedrock of a stable development of the local bond market, and further enriches the range of RMB financial products available in Macao’s offshore market while promoting the internationalisation of the RMB.
The MSAR Government would like to express its sincere gratitude towards all parties involved in facilitating this municipal government bond issuance in Macao, welcoming the Guangdong Provincial Government to continue using Macao as a platform for issuing bonds to raise funds, to further support Macao’s bond market development.
