UK lists first RMB bond on London Stock Exchange   

UK lists first sovereign bond in Chinese renminbi, or yuan, on the London Stock Exchange on Oct. 21, 2014. (Photo: CRI)

London (ECNS) – Britain's first sovereign bond in Chinese renminbi, or yuan, has been listed on the London Stock Exchange since Tuesday for secondary market trading.

Britain is the first Western country to issue a government bond denominated in renminbi.

On October 14, the British Treasury issued its debut RMB bond of 3 billion yuan ($490 million) with a maturity of three years. Strong demand pushed up the order book to 5.8 billion yuan ($950 million), lowering the yield to 2.7 percent from a targeted 2.9 percent.

The proceeds of the bond will be used to finance the country's reserves. Currently, Britain holds a mix of reserve currencies in US dollars, euros, yen and Canadian dollars.

Chinese Ambassador to Britain Liu Xiaoming said the issuance marked an important page in the internationalization of the yuan as a reserve currency, and would further strengthen China-UK economic cooperation.

Andrea Leadson, Economic Secretary to the British Treasury, said the move would renew London's status as a global financial center and major offshore RMB hub, and encourage other countries to develop the RMB bond market.

The UK government announced the beginning of the issuance on October 9 and held an Internet road show on October 13.

HSBC, Standard Chartered and the state-owned Bank of China have been leading the sale.