China launches first yuan-bond in London

Britain's Queen Elizabeth and the President of China, Xi Jinping, are driven by carriage to Buckingham Palace in London on Oct 20, 2015.
Britain's Queen Elizabeth and the President of China, Xi Jinping, are driven by carriage to Buckingham Palace in London on Oct 20, 2015.REUTERS

LONDON (AFP) - The People's Bank of China on Tuesday launched a yuan-denominated bond in London for the first time as it seeks to internationalise its currency.

The debt sale worth 5 billion yuan (S$1.1 billion) for one-year bonds was heavily oversubscribed, according to a banking source.

The auction for the bonds offering a yield of 3.15 per cent coincided with the start of a four-day visit to Britain by Chinese President Xi Jinping.

It is said to be the first time that a yuan-denominated bond auction has taken place outside of China and Hong Kong.