The Bank of China (BOC), one of the country's top lenders, announced Wednesday that it will issue 3 billion yuan (about US$398 million) worth of Renminbi-denominated bonds in Hong Kong starting from Thursday.

This is the third time for Chinese mainland financial institutions to issue RMB bonds in Hong Kong, putting the total amount at 10 billion yuan.

The 3 billion yuan bonds will be issued to both institutional and individual investors. The duration of the bonds is 2 to 3 years, with annual yield standing at 3.15 percent and 3.35 percent, respectively.

"The issuance of RMB bonds in Hong Kong helps expand the banking business scope and provides RMB investment opportunity for residents and enterprises in Hong Kong," said Xiao Gang, chairman of the bank

The development of RMB bonds market in Hong Kong will contribute greatly to consolidating Hong Kong's status as an international financial center, he said.

Hong Kong banks started to handle RMB business in 2004, and by the end of June this year, the RMB deposits in Hong Kong had reached 27.6 billion yuan.

(Xinhua News Agency September 13, 2007)