McDonald's to issue yuan bonds in Hong Kong

HONG KONG: Fast food giant McDonald's said Thursday it will issue almost 30 million US dollars worth of yuan-denominated bonds in Hong Kong, the first such move by a non-financial foreign firm in the city.

Standard Chartered, which will handle the offering, said McDonald's three-year yuan bond will carry an annual coupon of three percent and will be sold only to institutional investors.

The move signifies "the commencement of a new funding channel for international companies to raise working capital for their China operations," the bank said in a statement.

China is seeking to broaden the use of its yuan currency in Hong Kong after approving its use to settle cross-border trade with the financial hub in 2009.

In July, central banks in China and Hong Kong signed agreements to further ease restrictions on yuan useage and its circulation in the city.