IFC, a member of the World Bank Group, has introduced an innovative financial instrument to help China internationalize its currency, issuing the first renminbi-denominated note under its global discount note programme. The programme is the first of its kind, enabling the regular issuance of discount notes in the offshore renminbi market and expanding the availability of short-term local-currency finance for private enterprises in the region.

The discount note -- equivalent to about US$50 million -- is denominated in CNH, the deliverable form of the Chinese currency that is traded outside mainland China. The fast-growing CNH bond market was introduced as an offshore investment alternative to encourage greater renminbi-denominated trade between China and other countries. IFC is the first institution to launch a CNH discount note programme to eligible institutional investors globally.

Standard Chartered Bank is the sole arranger for the global discount note programme and the sole arranger of the renminbi issue. The renminbi notes have a three-month maturity.