BEIJING - China CITIC Bank has been approved to issue up to 1.5 billion yuan ($246 million) of yuan-denominated bonds in Hong Kong, so-called dim sum bonds, the bank said on Thursday.

The principal and interest will be repaid by the bank as foreign debt, and the proceeds raised should be used outside China's mainland, a CITIC Bank statement said.

In a previous announcement, the Beijing-based bank said institutional investors in Hong Kong and individual investors will be the target subscribers. The proceeds raised will be used to offer loans and replenish operating capitals.

The dim sum bond market in Hong Kong saw strong momentum in January, with bond issuance totaling 27 billion yuan in the month.