Bank of China issues RMB2b-Yulan Bonds

Yesterday, the local branch of Bank of China issued the world’s first ‘Yulan Bonds,’ as part of its latest move to push for the internationalization of the RMB, according to its statement.  The bonds have a two-year maturity and a total value of RMB2 billion. Fitch Ratings has assigned an expected rating of ‘A(EXP)’ to Bank of China Limited’s proposed senior unsecured Yulan notes that are issued by the bank’s Macau branch under the USD40 billion medium-term note (MTN) program. According to Fitch, the proposed notes will represent BOC’s direct, unconditional, unsecured and unsubordinated obligations and they are rated in line with its Long-Term Issuer Default Rating (IDR).