The Industrial Bank in the China (Shanghai) Pilot Free Trade Zone has issued a Yulan bond, offering a new channel for financial institutions in the FTZ to access offshore financing.

The bond, valued at 3 billion yuan ($431.21 million), comes with a three-year term and a 1.95 percent interest rate.

It has already attracted a wide range of investors, including banks, securities firms, asset managers, and insurance companies, both from China and abroad. The bond is proving highly popular, with subscriptions now exceeding 4.3 times the available amount.

Backed by Shanghai Clearing House and European clearing institutions, Yulan Bond business provides a smooth and transparent way for Chinese issuers to finance offshore.

Aimed at linking Chinese issuers with global investors, it provides registration, custody, and settlement services for Chinese issuers and overseas investors of the bonds.

Compared with the traditional overseas bond issuance, Yulan bonds are issued with electronic bond registrations and are more convenient in terms of capital security and information acquisition. Total issuances have already surpassed 22 billion yuan, marking a 40 percent year-on-year growth rate in 2025.

Looking forward, the Shanghai Clearing House aims to strengthen cross-border financial connectivity and expand the Yulan Bond business, supporting the internationalization of the RMB and Shanghai's development as a global financial hub.