China issues first-ever renminbi-denominated sovereign bond abroad

A Chinese clerk counts yuan banknotes at a bank in Huaibei city, East China's Anhui province, January 22, 2015.[Photo/IC]

LONDON - The Chinese Finance Ministry has successfully issued 3 billion renminbi-denominated sovereign bond in London, the first of its kind outside China, according to the ministry.

The distribution of the 3-year-term bond with an issuing interest rate of 3.28 percent, was jointly undertaken by the Bank of China and HSBC.

According to HSBC, the bidding from global investors which included commercial banks, central banks and public institutions, for the Chinese national bond reached 8.5 billion worth of renminbi.

Sun Xiaoxia, a senior official from the Chinese Finance Ministry, said that the launching on Thursday of renminbi-donominated sovereign bond in London was part of the consensus reached between China and Britain during Chinese President Xi Jinping's visit to the UK last October as well as an important result of deepening financial cooperation between the two countries.

Issuing renminbi-denominated bond relies on steady development of the Chinese economy, meets the trend of currency offshore market and has significant importance for London as the international hub to handle renminbi, the official said.