The Export-Import Bank of China (China Exim Bank) said last Thursday it had received approval from the central bank to issue 2 billion yuan (about $265 million) worth of renminbi bonds in Hong Kong.

It will become the second mainland bank to issue such bonds there after China Development Bank (CDB), which issued 5 billion yuan worth of renminbi bonds between June 26 and July 6. This issuance was the first ever made by a mainland financial institution after the People's Bank of China and the National Development and Reform Commission issued a regulation on June 8 to allow policy and commercial banks to issue yuan-denominated bonds in Hong Kong.

In both cases, the coupon is set at 3 percent per annum, with maturity in two years. This is much higher than the typical 0.8 percent rate offered by local banks on yuan deposits.