Panda Bond Sales Jump as Foreign Borrowers Tap Yuan Funding
Listen to the full version
Panda bond issuance in China is on track to rise more than 50% year-on-year in the first quarter as foreign borrowers increasingly tap the market for yuan funding.
Panda bonds are yuan-denominated debt issued by overseas institutions and sold on the Chinese mainland.
Issuance this year had reached nearly 62 billion yuan ($9 billion) as of Thursday, according to Dealing Matrix data. With another 2 billion yuan set to be issued this week, first-quarter issuance is projected to reach about 64 billion yuan, up from less than 42 billion yuan in the same period last year.
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- RELATED
- DIGEST HUB
Digest Hub
Back
- Panda bond issuance in China is projected to rise over 50% year-on-year in Q1, reaching about 64 billion yuan.
- Panda bonds are yuan-denominated debt issued by foreign entities on the Chinese mainland.
- Deutsche Bank executed the largest panda bond deal by a foreign bank last week; AIIB increased its bond size due to strong demand.
- Deutsche Bank
- Deutsche Bank recently issued a significant 5.5 billion yuan in Panda bonds. This included a 1.5 billion yuan five-year bond and a 4 billion yuan three-year note, representing the largest Panda bond issuance by a foreign bank to date. This move highlights their participation in the growing market for yuan-denominated debt in China.
- Asian Infrastructure Investment Bank
- The Asian Infrastructure Investment Bank (AIIB) recently sold a three-year Panda bond, increasing its size to 3 billion yuan (from 2 billion yuan) due to strong investor demand. This highlights the growing trend of multilateral lenders utilizing the Chinese onshore market for yuan-denominated debt.
- PODCAST
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新