Industrial & Commercial Bank of China Ltd. will become the first mainland Chinese-headquartered lender to issue bonds denominated in yuan in London, Chancellor of the Exchequer George Osborne said in a Twitter posting.
The world’s biggest bank by market value will issue the notes next month, according to the posting yesterday, which didn’t give details. Osborne met Chinese Vice Premier Ma Kai in Beijing yesterday.
The U.K.’s Coalition government is forging closer links with the world’s largest emerging economy as it seeks to establish London as a hub for offshore yuan trading. The Bank of England was the first European central bank to establish a currency-swap facility with China when it agreed on a 200 billion-yuan ($33 billion) line in June and Osborne said yesterday that agreements on yuan settlement and clearing are planned.
HSBC Holdings Plc (HSBA) became the first European bank to list an international yuan-denominated bond in London with a 2 billion-yuan issue of Dim Sum bonds in April 2012. More than half the orders for the securities came from Europe.
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