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ICBC Actively Boosts Panda Bonds Business
 

With the continuous opening-up of China’s capital market and the progress of RMB internationalization, China’s market environment has become more standardized and maturer with its onshore bond market more appealing to overseas issuers and Panda bonds market expanded. ICBC, relying on its outstanding bond underwriting strength and great innovation capability, has been actively developing the underwriting business of Panda bonds. Data showed that, a total of 23 Panda bonds were underwritten by ICBC for 13 clients over the 2016-2017 period, with a total issuance size of 54.68 billion RMB, accounting for nearly half of the market share.

It is learned from sources of ICBC that the bank has been taking advantage of the favorable policy and market opportunities in recent years to support product innovation and business promotion of Panda bonds, to provide professional and comprehensive underwriting services to overseas clients, and to further enrich the type of issuers in domestic inter-bank bond market, thus pushing forward the process of RMB internationalization. Specifically, the first tranche of World Bank SDR-denominated bond underwritten by ICBC in 2016 was the first of its kind since 1981 in the world, and also the world’s first SDR-denominated bond issued in the form of public offering, which has gained widespread market attention and recognition. China Merchants Port’s medium-term note ICBC underwrote as the lead manager was the first ever “Belt and Road” medium-term Panda bond issued, from which the funds raised would be used specifically for interconnection projects, such as the port construction and operation along the “Belt and Road”. Joy City Panda Bond ICBC underwrote as the lead manager, marked the beginning of the Panda bonds issued by a non-financial enterprise via Bond Connect. Recently, ICBC, as the lead underwriter, helped Japan’s Mizuho Bank to issue Panda bonds, which was the first time for Japanese issuers to issue Panda bonds in China’s capital market. In addition, ICBC has further expanded its business in Panda bonds and actively cooperated with several sovereign agencies, international multilateral agencies, foreign financial institutions and enterprises in this field.


(2018-02-06)
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