China to Issue Sovereign Bonds in Canada

China’s Ministry of Finance announced plans to issue up to 4 billion yuan (CA$846 million) in sovereign green bonds in Canada starting November 9. This move is intended to expand the international use of the Chinese yuan and reduce reliance on the U.S. dollar. The proceeds from these green bonds will be allocated to environmentally beneficial projects.

• China will issue its first yuan-denominated sovereign bonds in Canada this week.
• The issuance will be up to 4 billion yuan (CA$846 million) in sovereign green bonds.
• The move aims to expand the international reach of the Chinese currency.
• China seeks to create an alternative to the U.S. dollar in trade.
• Proceeds from the green bonds will fund environmentally beneficial projects.
• Chinese Vice Premier He Lifeng is visiting Canada for talks on closer ties.