The southern Chinese province of Guangdong has issued in Macao offshore renminbi municipal bonds, the first issued in the city by a mainland Chinese local government, the Monetary Authority of Macao, or AMCM, says.

The authority announced in writing that the issue, on Tuesday, raised 2.2 billion yuan (US$341.2 million), to be repaid in three years with interest at the rate of 2.68 per cent.

The AMCM says the issue was more than three times oversubscribed, attracting institutional investors in Brazil, Australia and Japan, and in mainland China, Hong Kong and Taiwan.

The bonds give Chinese and foreign investors an opportunity to take part in developing the economy of Guangdong, the authority says.

The issue is a milestone in the development of the offshore bond market in Macao, and helps make the renminbi more international, the AMCM says.