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Can Renminbi-bonds scale as a viable option for developing countries?

Author

Listed:
  • Raih, Yoan
  • Luo, Guiliu

Abstract

As China seeks to internationalize the renminbi and EMDEs search for alternative sources of financing, Panda bonds have emerged as a growing funding option. This paper argues that while RMB borrowing can offer advantages over hard-currency debt, headline yields often understate the true cost once credit enhancement and currency risks are considered. Panda bonds have significant potential, but scaling the market will require further regulatory reforms, risk-sharing mechanisms, and stronger participation from multilateral and Chinese policy institutions.

Suggested Citation

  • Raih, Yoan & Luo, Guiliu, 2026. "Can Renminbi-bonds scale as a viable option for developing countries?," FDL Policy Notes 2606, CEPREMAP.
    • Handle: RePEc:cpm:notfdl:2606
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    File URL: https://findevlab.org/wp-content/uploads/2026/03/FDL_Policy-Note-33_RMB-denominated-bonds_FINAL.docx-.pdf
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