Panda bonds are onshore renminbi-denominated debt issued in China by overseas companies and/or governments. The panda bond market is used as a capital-raising platform for foreign firms and/or governments targeting domestic investors and hence, domestic investors are the main purchasers of these bonds.
A Panda bond is a Chinese renminbi-denominated bond from a non-Chinese issuer, sold in the People’s Republic of China.
The first two Panda bonds were issued in October 2005 on the same day by the International Finance Corporation and the Asian Development Bank. Their terms were 1.13 billion yuan of 10-year bonds at a 3.4% yield and 1 billion yuan of 10-year bonds at a 3.34% yield.
The Chinese government had been negotiating for several years about implementation details before permitting the sale of such bonds; they had been concerned about the possible effects on their currency peg. Eventually, it was agreed that funds raised from sales of Panda bonds would have to remain in China; issuers would not be permitted to repatriate such funds.
In May 2010, rules were liberalised and more issuers were allowed, with the restriction on proceeds not being remitted abroad lifted.
So from May 2010, proceeds is allowed to be exchanged to USD and/or Other Foreign Currencies and can be remitted abroad based on Foreign Bond Issuers’ demand.
In June 2016, China has signed a Memorandum of Understanding on panda bonds issuance with Poland’s Ministry of Finance, making Poland the first European sovereign government to issue such bonds.
In March 2018, the Philippines issued its inaugural renminbi-denominated bonds or Panda bonds. The Philippines became the first Association of Southeast Asian Nations member to issue Panda bonds. The Treasury bureau of the Philippines has said that regulatory approvals are the only remaining for the issuance of three-year and five-year panda bonds — renminbi-denominated debt sold in China by a foreign issuer.
OUR BOND ISSUING DEAL SIZE
Our bond issuing deal size range is: USD 50MM to USD 10B+
OUR ANNUAL INTEREST RATE
3% to 5.8%
OUR BOND TERM: LOAN MATURITY DATE
3 to 5 years
HOW TO APPLY?
You can apply for our tailor-made PANDA Bond Underwriting & Issuing by contact:
Mr. Bill Wren
WeChat: billwren
Cell/SMS/WhatsApp: +86 – 186 5206 1897
Email: bill(dot)wren#wrencapital(dot)me
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Wren Capital 