23 Aug 2010

McDonald's to issue bonds priced in yuan

5:22 pm on 23 August 2010

McDonald's intends to raise the equivalent of $US30 million by issuing bonds priced in Chinese yuan. It will be the first non-financial company to do so.

The American fast food company is to sell the bonds to investors in Hong Kong.

In February, China changed the rules governing bond sales that allowed the deal to happen.

Standard and Poor's chief economist David Weiss says other companies that need to raise money to expand in China are likely to follow suit.

WalMart, the world's biggest retailer, is considering such a move.