The issuance of panda bonds or yuan-denominated bonds issued by foreign financial institutions in China reached 66 billion yuan ($9.12 billion) as of April 14 this year, up 128.36 percent. over a year, according to data from financial information service Wind, highlighting the attractiveness of China’s low-cost borrowing market for offshore issuers.
Last week, Deutsche Bank AG issued the largest series of panda bonds by a financial institution in six years. According to a statement on its website, the bank issued its third round of panda bonds on April 11, raising 3 billion yuan via two-year Senior Preferred bonds. The transaction attracted an order book of more than 8 billion yuan, sparking strong investor demand and an attractive price relative to Deutsche Bank’s existing debt.
