The London branch of the Bank of China on Wednesday issued CNY2.5 billion ($413 million) worth of yuan-denominated bonds. This is the first such issue by the UK branch of a Chinese bank, said a statement by the Bank of China.

Accoring to Reuters, the bond issue comes as Beijing seeks to increase the international usage of its currency for trade and investment by foreign multinationals, even as it tinkers with liberalizing its capital account at home.

The Bank of China  also announced that the bond will list on the London Stock Exchange, the report said.

Bank of China said that the funds raised from the bond issue will all be retained in London to support the further development of the London offshore renminbi (RMB) market. Proceeds from the deal would also help enhance UK-China bilateral trade and investment, Reuters wrote.

Multinational lenders HSBC Holdings PLC, UBS AG and Bank of America Merill Lynch have been appointed as joint managers for the issue, to be coordinated by Bank of China, the report said.