The Asian Development Bank Wednesday said that it has filed an application for its debut Renminbi bond issue to People's Bank of China (PBOC).

ADB said in a statement that it will launch the Renminbi bonds, or Panda bonds, in the domestic bond market of China once approval is obtained from PBOC and subject to market conditions.

The bonds will be issued in the interbank market through a syndicate of underwriters lead managed by BOC International (China) Ltd, it said.

The filing is in response to the announcement by the Chinese government on Wednesday allowing ADB to issue Renminbi-denominated bonds in the country.

"ADB is privileged to be part of this important initiative. This is a major step forward in the development of the China's capital market," said Mikio Kashiwagi, ADB's Treasurer.

Given ADB's AAA ratings by Fitch, Moody's, and S & P, the issue will provide investors with the highest quality investment opportunities, introduce international best practice to China, and demonstrate the readiness of the China's bond market for issuance by foreign issuers, the bank said.

As a multilateral development bank in the region, ADB has a long-standing tradition of undertaking market-opening transactions in the region's domestic bond markets including Japan, South Korea, Taiwan of China, India, Malaysia, and Thailand.

The planned issue of Renminbi bonds will represent another milestone in ADB's quest to develop the region's bond markets, it added.

Source: Xinhua