Largest RMB-denominated bond issued by a financial institution since 2018 on our platform; European issuers make up nearly 20% of total panda bond issuance since 2005.
In a significant move, a leading global bank has successfully issued a new Panda bond, raising 3 billion renminbi (approx. 415 million US dollars) via 2-year Senior Preferred notes. This marks the largest Panda bond issuance by a financial institution since 2018.
Panda bonds are bonds issued by foreign entities in mainland China, allowing them to tap into the domestic RMB bond market. The bank's current issuance drew robust investor demand and priced attractively versus existing bank debt. The transaction attracted an order book of over 8 billion renminbi (1.1 billion US dollars).
The bank's Panda bond program allows for RMB bonds to be issued in an aggregate principal amount of up to 8 billion renminbi (1.13 billion US dollars) periodically in up to two years, with approval from China's interbank bond market (CIBM). This is the third Panda bond issuance from the bank in 2023, adhering to the pre-approved program by the People's Bank of China.
The proceeds of this transaction will be used for general business activities and development. The bank's CEO for Asia Pacific, Europe, Middle East & Africa (EMEA) and Germany, Alexander von zur Muehlen, stated that the bank is proud of its longstanding track record of driving international participation in China's onshore bond market. As a result, the bank has been the leading foreign bank for NAFMII-registered bonds1 in the China interbank bond market for the past four consecutive years.
The Panda bond market had RMB 61 billion (approximately 9.1 billion US dollars) of issuance in the first three months of the year. With such strong demand, 2023 saw historic levels of issuance for the Panda bond market, with activity set to continue throughout this year. The bank's latest Panda bond issuance underscores its commitment to supporting the internationalization of the RMB and continuous opening-up of the capital markets in China.
The National Association of Financial Market Institutional Investors (NAFMII) is a self-regulatory organisation that promotes the development of China's Over-The-Counter market. The association plays a crucial role in facilitating the growth of the Panda bond market.
While the latest record for the largest Panda bond issuance by a financial institution since 2018 is not explicitly found in the provided search results, it is clear that the bank's latest issuance is a significant milestone in the Panda bond market. For precise and current records, it is recommended to consult specialized financial news platforms or official market disclosures from the China National Association of Financial Market Institutional Investors (NAFMII) or related financial authorities.
1) The bank's successful issuance of a new Panda bond, worth 3 billion renminbi, demonstrates its active participation in capital markets, specifically in financing through the Chinese domestic RMB bond market.
2) The bank's ongoing Panda bond program, which allows for the issuance of up to 8 billion renminbi worth of bonds, showcases its continued engagement in finance within China's capital markets.
