China Central Bank Plans to Issue First Yuan Bond in London, Source Says

   By Fiona Law 
 

HONG KONG--The People's Bank of China plans to issue up to five billion yuan ($787 million) in yuan-denominated debt in London as early as this month, a person familiar with the matter said Thursday.

This marks the first time the Chinese central bank will issue a yuan bond in London, in a bid analysts believe to broaden the international use of the currency at a time Beijing is pushing for the yuan to gain the elite status of a global reserve currency.

In the latest issuance plan, the PBOC is likely to sell the yuan bonds with a one-year tenor or less, the person said, in a bid to build an offshore yield curve for Chinese government bonds.

HSBC Holdings PLC and Industrial & Commercial Bank of China Ltd. are arranging the bond sale, the person said.

The Chinese government has been mainly selling offshore yuan debt in Hong Kong, the biggest hub for yuan trading outside mainland China.

Write to Fiona Law at [e-mail]

(END) Dow Jones Newswires

October 08, 2015 06:41 ET (10:41 GMT)

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