The International Finance Corporation (IFC), an arm of World Bank, has issued an RMB-denominated bond worth RMB1 billion (US$162 million) listed in London.
The issuance is aimed at supporting the internationalization of the Chinese currency, and it attracted investors from around the world for an order book of RMB3.5 billion, said the IFC.
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The three-year bond saw demand from a wide investor base. Investors included commercial banks (34%), central banks (31%), fund managers (26%), and corporates (9%).
In terms of geographic distribution the majority of investors were in the Asia Pacific region (46%), followed by investors in the Americas (39%) and Europe, Middle East and North Africa (15%). The yield is 2%.
"IFC is committed to supporting the development of China’s capital markets, and the IFC renminbi bond sends a strong signal of confidence at a time of global uncertainty," said IFC vice president and treasurer Jingdong Hua.
"The strong response from international investors indicates their support of the currency in the long term, which is particularly important as China seeks to internationalize the renminbi," Hua added.
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By GlobalDataIFC previously pioneered the international issuance of renminbi-denominated bonds in China (Panda bonds) and Hong Kong (Dim Sum bonds).
HSBC, ICBC, and JP Morgan were the lead arrangers for the bond.
