China to Tighten Oversight of Companies’ Offshore Debt Sales

What’s new: China’s top economic planning agency, the National Development and Reform Commission (NDRC), released draft regulations Friday that will require Chinese companies to obtain approval before they can issue some types of debt offshore.

If a domestic company, or an overseas company or unit controlled by a domestic company, wants to raise funds offshore through debt instruments with a maturity longer than one year, it will need to obtain a certificate of review and registration from the NDRC. Debt instruments include bonds, financial leases, preferred shares and commercial loans. Each certificate is valid for one year.