Bank of China will list its first offshore yuan "Schengen bond" on the Euro MTF market of the Luxembourg Stock Exchange, according to a press release published on Monday by Bank of China Luxembourg Branch.

"The successful launch of this Schengen bond is a further step towards the internationalization of yuan," declared Ms. Zhou Lihong, General Manager of Bank of China Luxembourg Branch.

Robert Scharfe, [Hong Kong Company Formation & Registration]CEO of the Luxembourg Stock Exchange, said that the choice of Luxembourg as the listing place demonstrated the confidence of the Bank of China Group towards Europe and especially Luxembourg as a prime international financial center.

The three-year bond amounts to a total of 1.5 billion yuan($240 million), it was named "Schengen bond" using the name of a small village at the borders of Luxembourg, France and Germany which stands for free movement within Schengen member countries.