McDonald’s (MCD.NYSE), the US fast food restaurant giant, has completed a renminbi-denominated bond sale, the first by a non-financial company hailing from outside China and Hong Kong, Bloomberg reported. The company, which operates over 1,000 restaurants in China, sold US$29 million of 3% notes due in September 2013. They were sold via a private placement to Hong Kong institutional and professional investors. The move was made possible after Beijing passed rules in February allowing foreign companies to issue renminbi-denominated bonds through Hong Kong as part of efforts to strengthen the special administrative region’s position as a financial center and internationalize the Chinese currency. Hopewell Highway Infrastructure (0737.HK), Bank of East Asia (0023.HK) and HSBC (HBC.NYSE, HSBA.LSE, HSB.Euronext, 0005.HK) were the first foreign firms to issue renminbi bonds in Hong Kong. Wal-Mart (WMT.NYSE), the world’s largest retailer, plans to follow suit in what analysts tip to become a popular trend.
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