FOREIGN EXCHANGE | Staff Reporter, China

CCB to internationalize the RMB

China Construction Bank Corporation will sell US$400 million.

The Big Four state-owned bank is making the sale this month as part of China's effort to internationalize the renminbi (RMB) or yuan, according to sources. It will be the first dimsum bond issued by a Chinese bank in London, which has been promoting itself as an offshore RMB hub.

Hong Kong is China's testing ground for the RMBs internationalization and remains the world's largest offshore RMB trading center. London has overtaken Singapore to become the world's second largest offshore RMB-trading center after Hong Kong

CCB's proposed RMB bond will target European investors and will likely be listed on the London Stock Exchange. CCB's subsidiaries CCB International Capital Ltd. and CCB (London) Ltd. will arrange the bond sale. While the list of underwriters has yet to be completed, HSBC Holdings PLC and BNP Paribas S.A. are likely to participate, the person said.

Fitch Ratings said the proposed issue is expected to be rated at A, and all proceeds will be used to develop CCB's offshore RMB business and for other general corporate purposes.

The issue comes after HSBC issued a RMB2 billion three-year RMB bond in April, the first ever dimsum bond in London. The bond was listed on the London Stock Exchange and had drawn substantial interest from European investors.


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