Product Introduction

In accordance with international practice, when overseas institutions issue local-currency bonds in a market other than their home country, the bonds are typically named after distinctive elements of that issuing country or, in some cases, a well-known national nickname. 

Examples include "Samurai Bonds" in Japan, "Yankee Bonds" in the United States, and "Bulldog Bonds" in the United Kingdom. In the Chinese market, bonds issued by foreign institutions and denominated in renminbi are named "Panda Bonds." Benefiting from its extensive distribution channels, strong investment capabilities, and experienced team, the Bank of China has ranked first in the Panda Bond Underwriter Ranking for 11 consecutive years since 2014.

Issuer Types

There are four categories of foreign issuers for Panda Bonds:

Foreign governmental institutions: Representative issuers include Hungary, Egypt, the Canadian province of British Columbia, and the Emirate of Sharjah in the United Arab Emirates.

International development institutions: Representative issuers include the Asian Development Bank, the New Development Bank, and the Asian Infrastructure Investment Bank.

Foreign financial institutions: Representative issuers include Deutsche Bank, Crédit Agricole, National Bank of Canada, and United Overseas Bank.

Foreign non-financial enterprises: Representative issuers include Mercedes-Benz, BMW, Volkswagen, BASF, Bayer, and Suzano.

Product Features and Functions

Diversified financing channels: Issuing Panda Bonds enables issuers to access the world's second-largest bond market, helping them diversify their financing channels.

Strengthening the investor base: Issuing Panda Bonds allow issuers to expand their investor base and access a large number of institutional investors in China.

Managing financing costs: For issuers with RMB funding needs, the issuance of Panda Bonds can achieve asset-liability matching. Currently, the issuance interest rate of Panda Bonds is relatively low, allowing issuers to better manage their financing costs.