China Construction Bank Corp., the nation’s second-largest lender, is considering an offshore sale of yuan-denominated bonds that will be listed in London, according to a person familiar with the matter.
The notes would be the first so-called Dim Sum notes sold by a Chinese company to be listed in the city, according to data compiled by Bloomberg. The notes are expected to be issued this month, said the person, who asked not to be named because the terms aren’t set.
China Construction Bank plans to sell as much as 2.5 billion yuan ($401 million) of the securities to help develop its offshore yuan business, Fitch Ratings said in a report today. CCBL Funding Plc, a special purpose vehicle of the bank’s London unit, will sell the debt guaranteed by the parent, Fitch wrote.
Of the 512 billion yuan of Dim Sum notes sold to date, eight are listed in London, including debt issued by Australia & New Zealand Banking Group Ltd., HSBC Holdings Plc and Lloyds Banking Group Plc, data compiled by Bloomberg show.
U.K. Chancellor of the Exchequer George Osborne said in April he plans to make London a center for financial products denominated in the Chinese currency.