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The National Bank of Canada has become the second Canadian borrower – but the first private sector entity – to be given approval to issue yuan-denominated bonds in China’s Panda market.

The bank, which is following down the path set by the province of British Columbia, has been given the green light to issue up to 5 billion yuan (about $1 billion) in that country’s interbank or onshore bond market.

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The bank, which priced a EUR 750 million offering at a zero coupon on Thursday, is understood to be the first bank in North America to be accorded such a status.

The approval was given the same day that the Chinese Prime Minister, Li Keqiang was in Ottawa. In fact Mr. Li made the announcement at a joint press conference with Canadian Prime Minister Justin Trudeau.

In an English translation of the announcement, the People’s Bank of China said The National Bank of Canada has recently been approved to issue up to five billion RMB bonds in China’s interbank market. “The bond issuance by the National Bank of Canada is beneficial to promoting cooperation in the financial area by Canada and China, and to deepening economic and trading relations between the two countries. At the same time, this issuance will play a positive role in the international development of China’s bond market,” added the statement.