Supermarket giant Tesco (TSCO.) has launched what it has called a 'dim sum' Chinese renminbi bond issue to raise around £70 million.

The offshore renminbi-denominated bond issue has been launched in Hong Kong, with a maturity of three years and a semi-annual coupon of 1.75 per cent.

The bond issue will be used to support growth in its retail operations in China.

Laurie McIlwee, chief financial officer at Tesco, said, 'China is an important market for us and represents a great growth opportunity.

'This is a new and innovative way of funding our business as it continues to grow and demonstrates our commitment to China.'

Hong Kong was chosen as a reflection on its 'confidence in the Chinese market and strong commitment to growing a prosperous local business'.

The company expects the issue to be rated 'A-' by credit rating agency Standard's & Poor's.

McIlwee added, 'China is an important market for us and represents a great growth opportunity.

'This is a new and innovative way of funding our business as it continues to grow and demonstrates our commitment to China.'

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