Local entities jump on offshore bond bandwagon

Less-developed regions persuade investors to part with millions of dollars

In late March, Yunnan Investment Group, a conglomerate wholly owned by the Yunnan provincial government, sold its first $300-million offshore bond, becoming the latest Chinese local government-backed entity or LGE to do so.

Global investors bought the notes with great enthusiasm. Knowledgeable persons told China Daily that the notes were oversubscribed 11 times. The coupon on the three-year bonds was squeezed to 3.375 percent.