On January 12, ICBC, as the leading underwriter and bookrunner, helped Mizuho Bank of Japan issue three-year Panda bonds worth 500 million yuan. It is the first time for Japanese issuers to issue Panda bonds in China’s capital market. The coupon rate is set at 5.3% per annum. The funds raised would be used to support Mizuho Bank’s business development in China.

It is learned that Panda bonds have become an important tool for foreign institutions to raise money in China’s capital market. This issuance of Panda bonds, led by ICBC as a leading underwriter, marks a great achievement that has been made by financial institutions of China and Japan to make cross-border issuance of bonds and expand pragmatic financial cooperation, after mutual beneficial consensus has been reached by audit regulators of the two countries. This will also encourage more Japanese banks and foreign institutions in other countries and regions to tap into China’s capital market and enrich the type of issuers in China’s domestic inter-bank bond market, which is of great significance for further boosting the RMB internationalization.

Data has shown that ICBC has remained the largest underwriter in domestic yuan-denominated bond market for 10 consecutive years and continues to lead the market in the underwriting and issuance of Panda bonds. In 2016, ICBC underwrote a total of RMB27.68 billion worth of Panda bonds, accounting for 54.01 percent of the market share. In 2017, the figure stood at RMB27 billion, accounting for 45.53 percent of the market share.

Mizuho Bank, Japan’s second-largest bank affiliated to Mizuho Financial Group, one of the world’s largest financial groups, entered the Chinese market in 1981 and is committed to providing quality financial services to Japanese and Chinese enterprises in cross-border and inter-regional economic, trade and cultural exchange and cooperation.