UBS Seeks Panda Bond Issuance to Fund China Expansion
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UBS Group AG is seeking to issue panda bonds to fund its expanding operations in China, as the Swiss bank looks to capitalize on lower borrowing costs and improving conditions in its business there, Caixin has learned.
Panda bonds are yuan-denominated debt issued by foreign institutions and sold on the Chinese mainland.
CEO Sergio Ermotti told Caixin in a recent interview that the application process is under way, with proceeds intended to support UBS’s activities on the mainland. The plan follows a strong year for the bank in China, where its revenue rose more than 40% and pretax profit more than doubled in 2025.
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- UBS plans to issue about 7 billion yuan ($1 billion) in panda bonds to fund expanding China and Asia-Pacific operations.
- UBS’s China revenue rose over 40%, and pretax profit more than doubled in 2025; it also invested $100 million to gain full ownership of UBS Securities Co. Ltd.
- The issuance capitalizes on low yuan financing costs and rising global investor interest in currency diversification.
- UBS Group AG
- UBS Group AG, a Swiss bank, plans to issue approximately 7 billion yuan ($1 billion) in panda bonds to fund its expanding operations in China and the broader Asia-Pacific region. This move follows a strong year in China where its revenue increased over 40% and pretax profit more than doubled in 2025. UBS is capitalizing on lower borrowing costs in China and has deepened its commitment to the Chinese market by injecting $100 million into UBS Securities Co. Ltd. in December 2025.
- Henkel
- Henkel, a German industrial group, is mentioned as one of the foreign institutions that have recently issued "panda bonds" in China. This indicates that Henkel has successfully tapped into China's bond market, similar to British bank Barclays.
- Barclays
- Barclays, a British bank, has previously issued "panda bonds" in China. These are yuan-denominated debts issued by foreign institutions and sold on the Chinese mainland, indicating Barclays' participation in China's growing bond market.
- UBS Securities Co. Ltd.
- UBS Securities Co. Ltd. is a Beijing-based venture that received a $100 million capital injection from UBS Group AG in December 2025, increasing its registered capital. This followed UBS Group AG's acquisition of full ownership of the venture earlier that year, demonstrating UBS's deepening commitment to the Chinese market.
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