Bank of China acted as the lead underwriter and bookrunner for Barclays Bank Plc’s inaugural panda bond issuance in China’s interbank market on Nov 7. 

The issuance, totaling 2 billion yuan ($285.39 million), is structured into two tranches: a 1 billion yuan three-year bond with a coupon rate of 1.95 percent, and a 1 billion yuan five-year bond, which includes a call option, at a rate of 2.05 percent.

This marks the first time a United Kingdom issuer has entered the panda bond market, drawing considerable interest from domestic and international investors. Barclays' entry has set a precedent, opening the door for more high-quality international issuers to explore financing opportunities in China. This move is expected to enhance the regular participation of international issuers in China's domestic bond market.

The panda bond market has been steadily expanding in recent years, with ongoing improvements in regulatory frameworks attracting an increasing number of high-quality foreign issuers. The growth boosts the market's appeal to both domestic and international investors and plays a crucial role in supporting initiatives, including the Belt and Road Initiative, green development, and industrial upgrades.

BOC, a key player in the panda bond market, has maintained its position as the top underwriter for 11 consecutive years. By leveraging its extensive project experience and unique market insights, it will continue to facilitate the entry of premium issuers into the Chinese market, thereby contributing to the advancement of high-level international financial openness.