Linklaters has advised as the People Bank’s of China issued 5bn of 3.10% bonds due 2016 in London. This is the first time that renminbi government bonds have been issued outside China, in an attempt to open up an offshore renminbi debt market.

The deal will be celebrated at a ceremony and lunch taking place in London to coincide with President Xi Jinping’s first state visit to the UK. Those present include the Assistant Governor of the People’s Bank and a director of the Bank of England.

William Liu, Capital Markets partner at Linklaters, says: “The purpose of the issue is to increase the supply of high quality bonds in the offshore CNY market, increase the supply of high quality high grade collateral in the offshore CNY market; and to establish a benchmark interest rate for the CNY offshore market, facilitate CNY bond issuance and trading in the offshore market. It is significant that the UK was chosen ahead of possible launches in Europe and the US for the deal and sends a strong signal about the attractiveness of London as a global financial centre.”

The central bank’s offering is being arranged by Industrial & Commercial Bank of China Ltd and HSBC.

The Linklaters team is led by Capital Markets partners William Liu and Andrew Carmichael.