UK issues first non-Chinese sovereign bond denominated in the Renminbi

The British government says it has started the process of issuing the first non-Chinese sovereign bond denominated in the RMB. Three major banks have been appointed for the auction, the Bank of China, Standard Chartered, and HSBC.

The announcement follows the recent annual economic summit between the UK and China in London. The bond proceeds will be used to finance the UK’s national reserves. Britain’s Chancellor of the Exchequer George Osborne says the move will strengthen Britain’s exports to China and invites more investment.

So far, London only holds reserves in U.S. and Canadian dollars, euros, and the Japanese yen. The British government says the UK is already the fastest-growing market for RMB payment, more than doubling volumes from July 2013 to July 2014.

Source: CCTV