Bank of China will list its first offshore yuan bond on the Euro MTF market of the Luxembourg Stock Exchange, according to a press release published on May 12 by Bank of China Luxembourg Branch.

The three-year bond amounts to a total of 1.5 billion yuan ($240 million). It was named Schengen bond, indicating for free movement within Schengen member countries.

"The successful launch of the Schengen bond is a further step toward the internationalization of the yuan," said Zhou Lihong, General Manager of Bank of China Luxembourg Branch.

Robert Scharfe, CEO of the Luxembourg Stock Exchange, said that the choice of Luxembourg as the listing place demonstrated the confidence of the Bank of China toward Europe and especially Luxembourg as a prime international financial center.