BUDAPEST - Hungary has issued 1 billion yuan ($155 million) in government bonds on the Chinese market, Hungarian National Economy Minister Mihaly Varga informed on Thursday.

Hungary is the first Central or East European country to issue a government bond in renminbi, Varga said, adding that it was also the first significant and public yuan offering since China's market-upset early this year. The Hungarian Government Debt Management Center issued the yuan in a swap deal that replaced a similar debt held in euros.

The bonds expire in three years and carry an interest rate of 6.25 percent.

The issue was oversubscribed by more than two fold, Varga reported. He said that the move was in line with Hungary's government debt management strategy which is designed to reduce the interest rate on its debt as well as the portion of the debt in foreign currency.

The foreign currency portion of the debt has declined from 52 percent in 2011 to 35 percent in 2015. The new renminbi bond will cover a portion of the debt expiring this year, Varga explained.

Varga also noted that the deal conformed to Hungary's policy of opening to the east and would help to boost ties between Hungary and China.