The Asian Infrastructure Investment Bank, Beijing’s answer to the World Bank, is giving its backing to what it believes will be a wave of renminbi bonds issued by developing nations wanting to tap Chinese investors.
Jin Liqun, president of the world’s second-biggest development bank by members, told the Financial Times he had seen “great demand” for local currency borrowing and that a number of countries had asked for help on how to sell so-called panda bonds.
Last year, Egypt used a guarantee from the bank, covering principal and interest, to issue on the mainland Chinese market. Jin said the bank planned to offer further guarantees or advice on such lending as it tried to foster the development of this nascent market and encourage funding for high-quality projects in developing nations.