HSBC leads Bond-Connect-eligible corporate Panda bond

Where Panda bonds have typically been privately placed to a limited group of investors, the publically-syndicated nature of this transaction meant it was open to all qualifying institutional investors with CIBM Direct, Bond-Connect and Qualified Foreign Investor accessibility, maximising both domestic and international investor participation. As a result, approx.. 50% of orders came from outside mainland China.

Ingo Nolden, head of DCM and corporate finance at HSBC Germany, said:

“The opportunities for global issuers in China’s onshore bond markets are huge. Panda bonds are an ever more accessible and efficient way for [German/international] corporates to finance their operation and growth in China. As this deal shows, they are also increasingly a way for firms to reach a diverse set of international investors focused on China’s immense growth story.”

Timothy Yip, head of China onshore debt capital markets at HSBC, said:

“We are honoured and delighted to have played a key role in such a monumental transaction. It demonstrates the increasing depth and maturity of China’s onshore RMB bond market, which is already the second largest in the world. Thanks to ongoing efforts by regulators and relevant authorities to develop the Panda bond market, global issuers with RMB financing needs or operations in China now have more channels to optimise asset and liability structures, while offering an attractive investment proposition for international investors.”

The transaction follows recent structural reforms designed to further liberalise and open up the Panda bond market, alongside encouraging further production innovation.

HSBC has supported a wide range of issuers in raising over RMB37 billion of capital in the Panda bond market in recent years, from sovereign and supranational issuers to European corporates.

Kontakt:

Jens Friedrich
+49-211-910-1789
jens.friedrich@hsbc.de