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IPFS News Link • Currencies

World Bank issues its 1st yuan bonds in Hong Kong

HONG KONG (AP) - The World Bank is issuing its first bonds denominated in China's yuan in Hong Kong, joining a growing number of borrowers tapping the new debt market as Beijing gradually promotes of its tightly controlled currency abroad.

The World Bank said buyers of its 500 million yuan ($76 million), two-year bond were mainly Hong Kong-based financial institutions, companies and wealthy individuals. It said the money will go into its general fund, rather than being raised for a specific purpose.

The yuan is not traded on global currency markets but Beijing has loosened controls and allows Hong Kong banks to use it. Hong Kong is Chinese territory but has its own currency and a Western-style legal system and often is used as a site for mainland companies to interact with foreign investors.