China Development Bank (CDB) said Thursday it will issue bonds totaling US$500 million on Aug. 9 through the country's inter-bank market.

This will be the first issue of US dollar-denominated debts this year by CDB, one of China's three policy banks and the leading lender backing the development of domestic infrastructure such as roads and bridges.

The bank issued the same amount of debts in the previous two years, kicking off a nationwide pilot plan for foreign currency-denominated bond issue on domestic market. A CDB spokesman said the new issue would be another "beneficial try".

China is likely to allow more domestic financial institutions and enterprises to issue foreign exchange debts on the heels of CDB in an effort to optimize the use of whopping foreign currency holdings domestically, analysts say.

CDB said underwriting group for its bonds include 16 overseas and domestic banks, insurers and stock brokerages.

(Xinhua News Agency August 5, 2005)