HONG KONG (
, the biggest builder of construction equipment, plans to issue a 1 billion yuan ($150.5 million) two-year bond issue in Hong Kong, according to multiple reports.
Caterpillar is marketing the yuan bond to institutional investors with an indicative coupon of around 2.25%, a banker familiar with the matter told the
Wall Street Journal
. Caterpillar plans to use the proceeds from the bond to fund its operations in China, another person familiar with the situation told the newspaper.
Caterpillar becomes the second nonfinancial multinational company to tap Hong Kong's growing yuan-denominated bond market, the
in August raised 200 million yuan in bonds sold in Hong Kong to finance its expansion in China.
to help it sell the yuan-denominated bonds in Hong Kong, the
Caterpillar has secured approval from Chinese regulators -- including the People's Bank of China and the State Administration of Foreign Exchange -- to transfer the proceeds of the bond sale to the Chinese mainland, people familiar with the matter told the
-- Written by Joseph Woelfel
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