(Yicai Global) Oct. 14 -- Guangdong province and Shenzhen have issued the first batches of yuan-denominated bonds among China's regional governments offshore, resulting in a more than threefold oversubscription.

The two local governments have issued the pioneering notes in Hong Kong and Macau recently, according to the Shenzhen municipal government's press briefing and a report by Xinhua News Agency.

On Oct. 12, Guangdong issued CNY2.2 billion (USD341.8 million) worth of bonds which mature in three years in Macau. The coupon rate is 2.68 percent. The batch was oversubscribed by more than three times.

Shenzhen's CNY5 billion issuance in Hong Kong was divided into three parts. Those are CNY1.1 billion worth of two-year bonds, CNY1.5 billion of three-year ones, and CNY2.4 billion of five-year notes. The respective interest rates are 2.6 percent, 2.7 percent, and 2.9 percent.

The proceeds from the three-year and five-year bonds will be used for building senior high schools, urban rail transit systems, and water treatment projects, according to the municipal government.

The fundraiser is a first for a mainland government in Hong Kong since China started working on setting up a market for dim sum bonds in 2007. Initially, the issuers included policy bans, commercial lenders, and Hong Kong-listed companies.

Shenzhen's fresh bonds were oversubscribed by nearly three and a half times. Some 89 account holders from eight countries and regions placed orders, resulting in a sum of CNY17.4 billion (USD2.7 billion). Institutional investors, including asset and fund managers, as well as insurers, made up 34.2 percent of the orders.

The move marks a significant milestone for the development of Hong Kong’s financial services sector, said Carrie Lam Cheng Yuet-ngor, chief executive of the special administrative region.

The issuance has further enriched Hong Kong's yuan-denominated financial products, which has facilitated the internationalization of the Chinese yuan while reflecting the strengthened financial collaborations between the mainland and the SAR, Lam added.

The southeastern tech hub's notes will be delivered on Oct. 19 and eventually listed on the Stock Exchange of Hong Kong, a subsidiary of Hong Kong Exchanges and Clearing.

Editor: Dou Shicong, Emmi Laine, Xiao Yi