CITIC Bank International (CBI), a Hong Kong-based subsidiary of China CITIC Bank, announced Tuesday the issuance of the inaugural offshore renminbi Certificate of Deposit (RMB CD), the first of its kind in Hong Kong.

The total issue size of the one-year RMB CD to institutional investors is 500 million yuan, carrying a coupon of 2.68 percent. HSBC is the sole bookrunner and lead manager for the transaction.

The issuance is to support Hong Kong's development as an offshore RMB center and the robust growth in CBI's RMB businesses and will enhance the bank's RMB working capital for trade finance and optimize its RMB asset and liability position, said Woody Chan, Executive Vice President and Treasurer of CBI.

"In the past six months, we have recorded initial and increasing success in RMB offshore trade settlement and related currency hedge business," said Chan, adding that the RMB CD issuance will strengthen CBI's capability to meet with the anticipated sustained growth in RMB business.

Anita Fung, HSBC's Head of Global Banking and Markets in Asia-Pacific, expected more RMB-related products as the market evolves and China continues to move forward on the road to internationalization. "We are committed to contributing to the development of Hong Kong as an offshore RMB financial center," said Fung.