The Bank of Communications Hong Kong Branch issued the world's first offshore bond cleared in Shanghai's Lin-gang Special Area through a public offering on Aug 1. The bond carries a coupon rate of 1.85 percent with a maturity of three years.

This landmark issuance has attracted enthusiastic participation from high-quality investors from Hong Kong, the Middle East, Central America, and other overseas markets.

The Bank of Communications Lin-gang Special Area Branch, designated as the clearing bank for the offshore bonds by China Central Depository & Clearing Co, handles the issuance, fund collection, and interest payment for this bond.

The free trade account, a key element of financial reform and innovation in the pilot free trade zone in Shanghai, plays a central role in this issuance. The Bank of Communications has fully utilized the advantages of the policy for free trade accounts, offering secure and convenient cross-border settlement services to overseas investors and facilitating the orderly and free flow of funds between the pilot free trade zone in Shanghai and overseas markets.

The offshore bond will be listed on both the Macau Offshore Exchange (MOX) and the Luxembourg Stock Exchange (LuxSE).

The successful issuance of the world's first offshore bond in the pilot free trade zone by Bank of Communications Hong Kong Branch marks a major step forward in the development of an offshore financial system aligned with Shanghai's status as an international financial center, thereby supporting the internationalization of the renminbi.