Bank of China, CCB plan to sell yuan bonds in Taiwan

TAIPEI Mon Dec 2, 2013 8:55pm EST

Related Topics

TAIPEI Dec 3 (Reuters) - The Hong Kong branches of China Construction Bank Corp and Bank of China Ltd have applied to issue 2 billion yuan ($328 million) each in yuan-denominated bonds in Taiwan, according to the island's bond exchange.

The move comes after Bank of Communications Co Ltd and Agricultural Bank of China Ltd sold "Formosa" bonds on Friday and Saturday, respectively, via their Hong Kong branches - the first Chinese banks to issue yuan bonds in Taiwan.

Bank of Communications issued three-year yuan bonds at a yield of 3.4 percent, while Agricultural Bank of China sold bonds of the same maturity at 3.3 percent.

Financial ties across the Taiwan Straits have strengthened since early this year when China and Taiwan signed a yuan clearing agreement. ($1 = 6.0929 Chinese yuan) (Reporting by Clare Jim; Editing by Chris Gallagher)

FILED UNDER: