Recently, Industrial Bank, as the only national joint-stock bank acting as a joint lead underwriter, assisted the New Development Bank (NDB) in successfully issuing Panda Bonds worth of 6 billion yuan in the China Interbank Bond Market. The bonds have a maturity of 5 years with a coupon rate of 2.66%. The proceeds from the issuance will provide financing for infrastructure and sustainable development projects supported by the New Development Bank, aiming to support member countries’ development efforts and promote the achievement of sustainable development goals.
Panda Bonds refer to renminbi-denominated bonds issued by offshore companies in China’s onshore market, with repayment of principal and interest within a specified period. This issuance marks the largest 5-year bond issued in the Panda Bond market to date and is the first Panda Bond issuance by a multilateral development institution in China in 2024.
During the issuance process, Industrial Bank leveraged its expertise as a bond bank, and deepened the “integration of investment, underwriting and custody,” with a total underwriting amount of 900 million yuan. This initiative also encouraged external clients of the Group to bid for 540 million yuan, further diversifying the investor base for Panda Bonds and ensuring the smooth issuance of this bond.
The New Development Bank, established jointly by China, Brazil, Russia, India, and South Africa in 2015, aims to support infrastructure and sustainable development projects in BRICS countries and other emerging economies and developing countries. As a complement to existing multilateral and regional financial institutions, it seeks to promote global economic growth and development.