China’s LGFVs Set Offshore Bond Sale Record
- LGFV offshore issuance tops $24 billion so far this year
- Communist Party outlines policies aimed at shoring up sector
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China’s local government financing vehicles, seen as one of the biggest risks in the nation’s debt markets, are finding some respite in the offshore bond market as government efforts to ease repayment pressures bolster investor confidence.
LGFVs have issued a record amount of offshore bonds — including dollar bonds, offshore yuan bonds and those issued in other currencies — so far this year, with sales climbing to $24.1 billion as of July 22. That’s the highest level since Bloomberg began to compile the data in 2013 and is up 79% compared with the same period a year earlier.