Bank of China Sydney branch issues 2 bln yuan bonds

Bank of China's Sydney branch issued 2 billion yuan ($325 million) of yuan bonds on Wednesday, the first yuan bond in Australia, the bank announced on Thursday.

The two-year bonds, with a coupon rate of 3.25 percent, were well-received in the market, oversubscribed 1.45 times.

Some 27.5 percent of the bonds were subscribed by local investors, said the bank.

The leading underwriters of the issue include Bank of China, ANZ, National Australia Bank, Royal Bank of Scotland and Westpac Banking Corporation.

The Bank of China said it has filed application to the Australian Stock Exchange for the bond to be traded at the exchange.

The moves came amid China's increasing efforts to facilitate use of yuan in the global market.

Earlier in February, the Sydney branch of Bank of China and the Australian Stock Exchange signed a yuan clearing settlement to jointly develop an RMB clearing system.