BNK Busan Bank Co. Ltd. issued 500 million yuan of Formosa bonds, Yonhap News Agency reported May 10.

It was the first offshore yuan-denominated Formosa bond issuance by any South Korean bank, according to the news outlet. The bonds bear a coupon of 4.85%. The bank said the debt offering attracted bids worth more than 700 million yuan.

The bonds were subsequently listed for trading in Taiwan and Singapore.

The BNK Financial Group Inc. unit said it chose yuan-denominated bonds instead of dollar-denominated debt in anticipation of a rise in the cost of dollar-based funding. The bank plans to use the proceeds to roll over its maturing debt.

As of May 9, US$1 was equivalent to 6.36 Chinese yuan.