The security also dovetailed into a new initiative by some leading banks, the British government and Bank of England, to develop London as an international "hub" for renminbi securities, HSBC said.
"The internationalisation of the RMB is simply too important to ignore," it added.
Development of an offshore market for the renminbi was the way for the currency to develop into a "major global trading, financing and investment currency, and eventually a global reserve currency," HSBC said.
It expected the renminbi bond market to amount to 1.0 trillion renminbi (US$159 billion) within three years.
Leading western governments have pressed China for years to allow the yuan to rise to reflect market pressures and the strength of the Chinese economy, and to alleviate global financial imbalances which were a key factor behind the financial crisis.
China has begun easing its corset around the yuan exchange rate, and many analysts say that sooner or later the yuan is bound to take on a more international role.
HSBC said in a statement on its website: "The three year RMB-denominated bond, issued by HSBC Bank plc, is the first of its kind to be launched outside Chinese sovereign territory and to be issued from and distributed within Europe and Asia.
"It is being launched in London and listed on the London Stock Exchange with the aim of tapping the growing pool of RMB liquidity across Europe."
HSBC, one of the leading banks in Europe and with a strong historic presence in Asia, said: "London, with its leading role in global FX (foreign exchange) markets and its position as the preeminent global treasury centre, stands to play an important part in the growth of this market.
"HSBC's bond issue this morning coincided with the creation of a new initiative to develop London as an international RMB hub."
The initiative, organised by the City of London, involved representatives from five major banks, including HSBC, and was supported by the British treasury, the Bank of England and the Financial Services Authority.
"Its aim is to deliver a strategy for London to become a centre for RMB products and services, complementing Hong Kong, and seizing some of the significant opportunities which this new market represents," HSBC said.