The Bank of East Asia (BEA) has said that its wholly-owned subsidiary, The Bank of East Asia China (BEA China), has obtained approval from the People's Bank of China to issue Renminbi (RMB) financial bonds worth up to RMB5bn in China's interbank bond market.
BEA China plans to initially issue RMB financial bonds worth RMB2bn. In July 2009, BEA China became the first locally-incorporated foreign bank in Mainland China to issue RMB retail bonds in Hong Kong, through which BEA China raised RMB4bn.
BEA chairman and chief executive David Li said it is the honor for BEA to be one of the first locally-incorporated foreign banks in Mainland China to obtain approval to issue RMB financial bonds on the mainland.
"We would like to extend our heartiest gratitude to the relevant government authorities for the guidance and support they extended to our Bank during the application process.
"The issuance of RMB financial bonds in Mainland China not only enhances the asset and liability structure of BEA China, but it also improves BEA China’s overall liquidity risk management. Such move will be beneficial to the healthy development of BEA China in the long-term," Li said.