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Bank of China said to tap overseas investors for Silk Road loans
[BEIJING] Bank of China Ltd, the Chinese lender with the most overseas assets, aims to raise US$3 billion from foreign investors on Wednesday to help finance the nation's new Silk Road project, a person familiar with the matter said.
The lender is offering notes denominated in US dollars, euros, Singapore dollars and offshore yuan, according to the person, who asked not to be identified because the matter is private. It will use the funds mainly for the so-called "One Belt, One Road" plan developing infrastructure along China's old trade routes to the Middle East and Europe, the person said.
President Xi Jinping is using the project to boost use of the nation's currency in a trade that the vice chairman of China Securities Regulatory Commission has said may total US$2.5 trillion in a decade. Chinese companies linked to popular investment themes such as Silk Road are especially attractive, according to JPMorgan Chase & Co.
Bank of China is offering the notes in maturities including two and 10 years, the person said. It's marketing the notes due in 10 years denominated in dollars to yield about 180 basis points more than similar-maturity Treasuries, according to the person.
The lender is selling the bonds through its Hong Kong, Singapore and Abu Dhabi branches, the person said.