Hungary issues first green Panda bond in China

BUDAPEST, Dec. 14 (Xinhua) -- Hungary was the "first in the world to successfully issue" a green Panda bond in China in an amount of one billion Chinese yuan (157 million U.S. dollars), the country's Finance Minister Mihaly Varga said here on Tuesday.

Last week, the Hungarian Government Debt Management Agency's (AKK) Chief Executive Officer Zoltan Kurali said that Hungary had mandated the Bank of China to arrange the issue of a yuan-denominated green Panda bond. "The aim of the transaction was to ensure Hungary's continuous market presence in China."

This is the third time that Hungary enters the Chinese interbank bond market to issue yuan-denominated bonds.

Hungary already issued Panda bonds in China in July 2017 in the amount of one billion yuan and in December 2018 in the amount of two billion yuan.

The Bank of China has hosted an online ceremony with the participation of the Hungarian Ministry of Finance, the Hungarian Ministry of Innovation and Technology, the Chinese embassy in Hungary, the Hungarian embassy in China and the AKK.

"The first sovereign Hungarian green Panda bond of one billion yuan for three years was well received by both international and local investors," Hu Kun, general manager of investment banking and asset management department at the Bank of China, said.

"Hungary is the first to issue sovereign green Panda bonds here, and we can say that Hungary is a real pioneer in China's capital market," Hu added.