Vneshekonombank prepares to place bonds in yuan in Xianggang

SANYA ( Hainan Province, PRC), April 13 (Itar-Tass) - Vneshekonombank
(VEB) prepares for placement of bonds in yuan in Xianggang (Hong Kong),
VEB chief Vladimir Dmitriyev told Itar-Tass in an interview here on
Tuesday. Dmitriyev is heading a Russian delegation to a financial forum --
an annual meeting of the interbank association of BRICS countries-- that
opens here on Wednesday.
"Actually, such work is under way," Dmitriyev said. In the coming
days, the VEB chief said, the Bank's delegation will be in Hong Kong to
discuss these matters. "We do not speak on a timeframe or scope (of bond
placement) so far. However, we consider that investors in Hong Kong and in
mainland China, in particular, are highly interested in working with us,"
Dmitriyev said. Hong Kong, he explained, "is the floor on which we must
work with potential investors". "I refer to preparations for the placement
of yuan-denominated eurobonds in Hong Kong," he emphasized.
The VEB chief also said, "The Bank discusses the question of
borrowings in yuan with Chinese partners, including the State Development
Bank of China, with yuan subsequently converted into US dollars resultant
of foreign-exchange hedging while yuan will remain here as a deposit of
that borrowing".
"From the viewpoint of interest rates, this may be much more
beneficial than applying to American or European markets for direct
borrowings in US dollars," Dmitriyev maintains.