HONG KONG Nov 2 China Construction Bank (CCB),
the country's No.2 lender by market value, is planning to issue
an offshore yuan bond in London, a move to further promote
China's currency outside Asia as Beijing accelerates the process
to make it international.
The dim sum bond, which will be capped at 2.5 billion yuan
($400.6 million), is expected to be issued through CCBL Funding
PLC in London and guaranteed by CCB , rating
agency Fitch said in a statement on Friday.
All funds raised will be used to develop CCB's offshore yuan
business and for other general corporate purposes, Fitch said.
The issue follows HSBC's sale of a 2
billion yuan dim sum bond in April, which was well received
among European investors and the order book reached 4.4 billion
yuan from more than 100 accounts.
China's Industrial and Commercial Bank ,
the largest bank in the world, sold a 100 million yuan
certificate of deposit (CD) via its London subsidiary in May.
The new issue from CCB will consolidate London's position
amid fierce competition from Singapore, Australia and Taiwan to
become the world's second offshore yuan centre after Hong Kong.
Total yuan deposits in London were over 109 billion yuan,
among which 35 billion yuan were personal and corporate customer
deposits, according to a report by City of London in April.
London was also the largest offshore yuan spot FX trading
center with a market share of 26 percent, following Hong Kong's
56 percent, the report said.