China Development Bank Corporation, which was converted from a policy lender into a stockholding commercial bank last year, announced Monday the offer of its first Renminbi-denominated bonds in Hong Kong since its conversion, with the minimum issue size of one billion yuan.

The bonds, which are offered to both institutional and retail investors from July 28 to Aug. 14, have a denomination of RMB 10,000 with a tenor of two years, bearing an interest rate of 2.45 percent per annum payable semi-annually. The bonds will be available for public subscription at 16 placing banks with branches in Hong Kong, including Bank of China (Hong Kong) Limited, Bank of Communications, the Bank of East Asia and China Construction Bank (Asia).

"The issuance of the bonds not only targets at fund raising, but also implements the central government's important measures to support the development of the financial and bond markets in HKSAR (Hong Kong Special Administrative Region)," said Gao Jian, vice president of China Development Bank, at the launch ceremony for the offering of the bonds.

He also said that the Hong Kong Branch of China Development Bank will be established soon.

The joint lead managers and book runners for the issuance of the bonds are Bank of China (Hong Kong) Limited and the Hongkong and Shanghai Banking Corporation Limited.

China Development Bank had issued 5 billion yuan Renminbi- denominated bonds in HKSAR in 2007 before it went commercial, making it the first financial institution on the Chinese mainland to issue Renminbi-denominated bonds in HKSAR.

China Development Bank was established in 1994 as a government policy-oriented statutory financial institution pursuant to a special decree issued by the State Council. On Dec. 11, 2008, it was converted into a joint stock banking corporation, jointly owned by China's Ministry of Finance and Central Huijin Investment Company Limited.

(Xinhua News Agency July 27, 2009)