FinMin issues 3 year-maturity renminbi bonds valued at PLN 1.6 billion

The Ministry of Finance  issued bonds nominated in Chinese yuan on Thursday onthe Chinese Interbank market. These so-called "Panda" bonds have been valued at PLN 1.727 billion; their maturity date is August 26, 2019, the Ministry reported. The Ministry stated on Thursday that the bonds' interest rate stood at 3.4 percent (yearly). The deal will be closed on August 26. The department also stated hedging the financial instruments, saying that "currency swap contracts on the euro have been made to ensure the safety of future cash flows. The profitability of the bonds after having taken those actions formed at -0.173 percent." The MF stated the demand for the instruments was twice as high as the number of those issued, and most of them were bought by institutional investors. The Bank of China and HSBC were the leading issuing consortium.