Bank of East Asia (China) Limited (BEA China) will issue no less than 1 billion yuan (US$146.41 million) worth of retail bonds in Hong Kong. The bonds will bear an annual interest rate of 2.80 percent, the Hong Kong-based bank announces on June 29.

The Bonds are open for personal and institution investment from today until July 17, and will be due on July 23, 2011. Interest is payable at the end of every six months on January 23 and July 23 in each year, starting on January 23, 2010.

Bonds come in intervals of 10,000 yuan each (US$1464.13). Like all bonds, BEA China's bonds assume cash risk and credit risk. Additionally, the bonds are non-callable and non-convertible.

In May, HSBC China and BEA China were approved by the central bank to issue RMB bonds in Hong Kong, a 3 billion yuan (US$439.24 million) upper limit was enacted.

Earlier on June 25, HSBC China issued its first term bonds, worth 1 billion yuan (US$1464.13). The HSBC bonds have an adjustable interest rate, 38 base points upper than the three-month Shibor benchmark, and are only oriented to institutions; this is different from the fixed rate bonds issued by BEA China.