panda bond

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.

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.

The issuance from the Hong Kong conglomerate, formerly known as NWS Holdings, was to finance the redemption of its outstanding offshore capital securities by its subsidiary.

The commodities group has returned to the market for the first time in three years and the PBOC has given approval for the funds to be repatriated offshore.

The three-year deal for the Singaporean bank was priced at a mid-range of 2.3% and could list on the Singapore Exchange.

Bank of China, China Merchants Securities and Mizuho Bank (China) jointly managed the Rmb1bn issuance for the Hong Kong listed hospitality group.

This marks the second sustainability-linked panda bond issuance, after the Rmb1bn offering from CapitaLand Investment earlier this year in March.

UOB China returned to the onshore bond market last week to tap its offer of ample liquidity and low yield.

The private route offers a new financing channel for foreign issuers to borrow from China's $9.5 trillion debt market.