Bank of Tokyo-Mitsubishi UFJ announced this week that through a two-year bond offering, they expect to raise 350 million yuan that would be sold to Japanese institutional investors, life insurers and regional banks.
This comes at a time when China is looking to drive this currency into other countries and the Chinese president Xi Jinping held talks with the Japanese Prime Minister Shinzo Abe following a setback in diplomatic ties, according to The Japan Times.
The leaders of China and Japan both agreed to prioritise the issue of yuan denominated debt in 2011 but because of the tension between both countries, this was pushed back.
2011 was also the year when McDonald’s and Caterpillar both issued yuan-dominated bonds, while HSBC held a sale in London the year after. Alongside this, in 2014 the International Finance Corporation, part of the World Bank, issued yuan-dominated bonds in London.
The Nikkei Business Daily also reported that the Chinese and Japanese finance ministers met to ensure active promotion and practical cooperation in relation to the yuan bond offerings in Japan.
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