China Development Bank issues RMB bonds in London

Photo taken on May 12, 2013, shows the tower of China Development Bank in Shanghai. [Photo/IC]

BEIJING - China Development Bank (CDB), a State-owned policy bank, said on Monday that it had issued 2 billion yuan ($325.5 million) of yuan bonds in London.

This is the first time such quasi-sovereign yuan bonds have issued on the London market, the bank said in a statement.

The bonds are three, five and ten year, with fixed interest rates of 3.35 percent, 3.6 percent, and 4.35 percent, respectively.

CDB vice president Zhang Xuguang said that the bonds, backed by China's central bank and the National Development and Reform Commission, were important for offshore yuan market development, as China steadily expands the global reach of its currency .

The statement also said that Europe accounted for around 30 percent of bond purchases.