China bonds with EU over green issuance and Pandas

The deal is a milestone for Kazakhstan's integration into global capital markets.

As investors show more confidence in China's onshore bond market, Singapore's UOB priced a three-year panda bond at 1.83% on March 18, while Deutsche Bank and BNP Paribas also issued panda bonds worth over Rmb5bn this month.

Amid encouragement from China, countries in the region and international entities, are increasingly issuing large panda bonds to diversify from US dollar debt.

The oversubscribed Euro offering is in three tranches of 8, 12 and 20 years, and follows green bond issuances in Hong Kong and Australia in H1 2026.

The issuance of a sovereign panda bond, in addition to a dim sum bond from the Development Bank of Kazakhstan, will give the country Renminbi benchmarks.

The Rmb2.5bn 2.0% notes are the German carmaker’s third onshore Renminbi bond issuance. The company told FA that the move is part of its funding diversification efforts.