*3.3.4 Issue 'panda bonds' on the mainland market of China*

'Panda bonds' can be placed on the interbank market, which occupies 90% of the issue, as well as on the Shanghai and Shenzhen exchanges. At the same time, it is desirable that the first issue should be conducted by a sovereign borrower in order to provide guidance for other entities. For example, on December 15, 2015, the South Korean Government issued three-year "Panda bonds" worth 3bn Yuan, at a rate of 3%. On January 21, 2016, a three-year issue of 3bn Yuan was held by the province of British Columbia (Canada), at 2.95%. On August 26, 2016, the Polish Ministry of Finance issued three-year bonds worth 3bn Yuan, at a rate of 3.4%. As for corporate issuers, the experience of Russian RUSAL might be useful: in March 2017, it conducted a three-year issue worth 1bn Yuan, at a rate of 5.5%. At the same time, this Russian company received a rating from the Chinese Agency CCXC in June 2016; it turned out to be higher than the sovereign rating of the Russian Federation [16]. German Daimler, French Veolia Environment, Air Liquide, and Mongolian Bank TDBM also attracted unrelated loans from China's financial markets.
