Bank of Communications to offer yuan bonds in HK

2008-07-16 11:35:37 GMT       2008-07-16 19:35:37 (Beijing Time)       Xinhua English

HONG KONG, July 16 (Xinhua) -- The Chinese mainland-based Bank of Communications announced on Wednesday that it will offer renminbi-denominated bonds worth a total of 3 billion yuan (435 million U.S. dollars) on July 17-23.

The two-year bonds with a denomination of 10,000 yuan each will carry a coupon of 3.25 percent, with half-year interest payments. Trading of the bonds is expected to start on July 29, the bank announced at a ceremony marking the issuing of the bonds.

Proceeds from the bond issuing will be used for loans, increasing liquidity as well as general corporate purposes, the bank said in a statement.

The Bank of Communications was the fourth mainland-based banks to issue RMB-denominated bonds in Hong Kong since 2007, after the China Development Bank, the Export-Import Bank of China, both policy banks, and the Bank of China.

It also increased the total RMB bonds issued by mainland banks in the Hong Kong Special Administrative Region up to 13 billion yuan (1.88 billion U.S. dollars).

The launch "provides a driving force" for the development of the mainland and Hong Kong financial markets and will add to the strength of RMB bonds in the international financial markets, said Yu Yali, vice president of the bank.

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