McDonald's Corporation is the first non-financial foreign company to implement a yuan-dominated bond in Hong Kong. The company announced today that is has privately placed bonds to institution and professional investors in the Hong Kong area.
The Renminbi (RMB)-denominated bonds will accrue interest at an annual rate of 3 percent, and will provide capital to support the growth of McDonald's throughout China.
The McDonald's expansion plan in China includes the opening of new restaurants, reimaging existing restaurants and implementing convenience initiatives. This year, the company hopes to open between 150 and 175 restaurants in the country.
McDonald's plans to have more than 2,000 stores in mainland China by the end of 2013.
"We are pleased that McDonald's is set to become the first issuer of RMB-denominated bonds by a multinational company," said Timothy Fenton, president of McDonald's APMEA (Asia/Pacific, Middle East and Africa), adding that this announcement is a sign of the company's confidence in its long-term growth opportunities for China.
