The China Construction Bank is proposing to issue panda bonds for Malaysia to help with the country's finances, revealed China's ambassador to Malaysia Bai Tian.

According to The Edge Markets, Bai Tian made public the proposal during the Malaysia-China Bilateral Cooperation Lunar New Year Luncheon 2019 yesterday.

The report said the bonds, which will be issued in China, have an indicative coupon rate of 3.07 percent for a 10-year term.

The offer came amid Putrajaya mulling to terminate the East Coast Rail Link (ECRL) project on grounds of financial challenges.

The project, which has been suspended pending negotiations, is being built by China Communications Construction Company with a loan from China's Exim Bank.

In December last year, Japan agreed to provide Malaysia with Samurai bonds after Prime Minister Dr Mahathir Mohamad visited the country.

Finance Minister Lim Guan Eng had said details on the subscription of the first Samurai bond would be released next month.

The indicative coupon rate for a 10-year Samurai bond is 0.65 percent.