Plans by the Asian Development Bank and International Finance Corporation to issue renminbi-denominated bonds in Hong Kong could provide a big boost to the fledgling market in offshore renminbi debt being developed by China.

The supranational agencies, which five years ago pioneered the so-called “Panda“ bond market on the Chinese mainland, will be among the first foreign groups to sell renminbi bonds to international investors.

While small, the ADB and IFC bonds are likely to boost the credibility of Hong Kong's renminbi bond market, which has seen just 14 deals – almost all from Chinese banks – since it began in 2007. IFC, the private arm of the World Bank, plans to raise the equivalent of $50m from its renminbi-denominated bond sale and use the proceeds to finance an energy efficiency project on the Chinese mainland.

It is awaiting final approval from Beijing to transfer the proceeds to the mainland, where it will be lent to a company that makes high-temperature air combustion equipment, Nina Shapiro, IFC Treasurer, told the Financial Times.

The bond, which will have a maturity of between three to five years, would be the first in a series of deals, Ms Shapiro said.

Dealmakers said ADB has also drawn up plans to issue renminbi bonds offshore, although the agency declined to confirm this or reveal any details.

“We will naturally be interested in any opportunity to issue renminbi bonds in Hong Kong or in mainland China subject to necessary regulatory approvals,” said Monish Mahurkar, the ADB's head of local currency capital markets. “There is potential for substantial growth in the offshore renminbi capital markets,” Mr Mahurkar added.

ADB and other international financial institutions have regularly used local currency bond issues to help establish pricing in developing bond markets which can then be used as a benchmark for corporate borrowers.

However, analysts and dealmakers expect the offshore renminbi bond market to grow slowly, not least because Chinese regulators have retained control over flows of capital to the mainland.

“Let's not get carried away that the floodgates are about to open,” said Fraser Howie, an expert on China's capital markets. “Bottlenecks are always built into the system and here it's the need for approval to bring money into China.”