Caterpillar said this week that it is considering a second offshore yuan bond issue in Hong King after raising about 1 billion yuan (U.S. $154 million) from its first bond sale last November. The company is meeting bond investors in Asia this week, Jim Duensing, chief financial officer for Caterpillar Financial Services Corp. told Dow Jones Newswires. Duensing did not speculate on the timing of the possible yuan bond sale.
The funds from a potential bond issue would allow the company to invest in China, a major market that accounted for about half its Asian growth in 2010.
Caterpillar was the second non-financial foreign firm to enter Hong Kong’s yuan-denominated bond market after McDonald’s raised 200 million yuan from its bond issue there last August.