Bank of China, as the lead underwriter, assisted Morgan Stanley in the targeted issuance of a 2 billion yuan ($281.45 million) five-year Panda Bond in China's interbank bond market on July 24. 

The Panda Bond is a renminbi-denominated bond issued by a non-Chinese entity and sold on the Chinese mainland.

This issuance is the first Panda Bond issued by a United States-headquartered company, carrying a coupon rate of 1.98 percent and attracting subscriptions from a diverse group of investors.

As of the end of June, BOC ranked first in underwriting share for Panda Bonds in the interbank market for 11 consecutive years. It has assisted over 70 overseas issuers in issuing nearly 300 Panda Bonds, with a total financing amount exceeding 570 billion yuan.

Mercedes-Benz Group issued the first Green Panda Bond — similar to a standard Panda Bond but with proceeds earmarked for green assets or projects — by a foreign non-financial enterprise in the Chinese interbank market in 2022. Egypt issued Africa's first Panda Bond in 2023. Suzano Group issued a Panda Bond in 2024 — the first by a South American issuer.

To date, the issuance volume of Panda Bonds has exceeded 1 trillion yuan, becoming a gateway for high-level opening-up. It holds significant importance in enriching the diversified financing system for the Belt and Road Initiative and in attracting international issuers to participate in regular domestic issuances. 

BOC will continue to leverage its global service network and cross-border investment banking advantages to make greater contributions to promoting the two-way opening-up of the financial market.