ASTANA — The Eurasian Development Bank (EDB) has received a license to operate in China’s interbank bond market (China Interbank Bond Market, CIBM), according to information published by the People’s Bank of China on June 22. The CIBM is one of the world’s largest bond markets.
According to data from the Bank for International Settlements and the People’s Bank of China, the market has more than 160 trillion yuan (approximately $22 trillion) in outstanding bonds. The license allows the EDB to directly conduct transactions in the Chinese bond market, including the purchase and sale of government, corporate and other bonds.
It also permits the bank to engage in bond repurchase (repo) transactions and derivatives trading. “Obtaining the CIBM license is an important step for the EDB. We are not only diversifying our securities portfolio and gaining a flexible instrument for managing yuan liquidity.
It also opens additional opportunities for financing the bank’s investment projects in yuan, particularly in countries and sectors where the Chinese currency is becoming increasingly significant,” said Nikolai Podguzov, chairman of the EDB Management Board. “Essentially, this is another bridge between our projects and one of the world’s largest capital markets,” he added.