(File photo: VCG)
NUR-SULTAN, April. 1 (Xinhua) -- The first yuan-denominated bond, issued by the China Construction Bank (CCB) Astana branch, has been listed on Kazakhstan's Astana International Exchange (AIX) and the Hong Kong Exchanges and Clearing Limited (HKEX), the press service of the CCB Astana branch announced on Wednesday.
It is the first RMB bond issued in Central Asia. The funds raised will be used to support local infrastructure and Belt and Road projects in Kazakhstan.
With an interest rate of 2.95 percent per annum, the bond in the amount of 1 billion yuan (141 million U.S. dollars) is available for professional investors.
Kairat Kelimbetov, governor of the Astana International Financial Center (AIFC), said the listing was a result of close Kazakhstan-China financial cooperation under the framework of the Belt and Road Initiative.
"The bond will promote the development of an offshore RMB market in the AIFC, Kazakhstan and Central Asia," he said.
Tim Bennett, CEO of the AIX, said the bond is the first RMB product of the AIX Belt and Road market. It provides an innovative model for funding Belt and Road projects in Kazakhstan, which will contribute to the development of the local economy and create new jobs.
"The CCB Astana branch will continue to work with the AIFC and the AIX on building an offshore RMB center to promote local currency settlement in China and Kazakhstan," Wang Songhua, senior executive officer of the CCB Astana branch, told Xinhua.
The AIFC, Kazakhstan's regional financial hub, was founded in January 2018. As one of the 55 China-Kazakhstan production capacity cooperation programs, the AIX, with Shanghai Stock Exchange and the Silk Road Fund among the shareholders, is a major participant of the AIFC.
China Construction Bank officially opened its Kazakh branch last September.