Offshore debt markets open up new financing channels for local governments

Offshore debt markets are fast emerging as alternative financing channels for local government financing vehicles and infrastructure companies.

Till date, at least five mainland-based LGFVs and infrastructure companies have sold a combined $3 billion worth of bonds in overseas markets. Four of these are first-time issuers, information compiled by China Daily showed.

The latest sale was by Anhui Transportation Holding Group Co, which made its debut on dollar bond market on June 4 by selling $300 million notes.