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South Korea to issue 3 billion yuan sovereign bonds in China

[BEIJING] South Korea expects its planned yuan-denominated sovereign bond issuance in China to be made during next week, a finance ministry official said soon after China's central bank approved the 3 billion yuan (S$658 million) sale on Tuesday.

The finance ministry said in a statement South Korea would be the first country to issue yuan-denominated sovereign bonds in China, with Beijing pushing to open its capital markets more widely. "It will likely be made during next week," Song In-chang, head of the South Korean finance ministry's international finance policy bureau, said following the People's Bank of China approval of the planned issuance.

The ministry's statement said road shows would be held in Shanghai and Beijing from Dec 9-11.

Reuters first reported on Monday that China was expected to approve South Korea's planned yuan-denominated onshore Panda bonds.

China is South Korea's largest trade partner, and the two have struck a free trade agreement to boost trade and investment.