On December 5th, Deutsche Bank announced that it had successfully completed the second phase of panda bond issuance, with an amount of RMB 1 billion and a term of 3 years, as a senior priority bond. The net proceeds raised from this issuance will be used for the general corporate purposes of Deutsche Bank to support its related business activities and development.
It is reported that this transaction is the second bond issuance after Deutsche Bank successfully issued its first 1 billion yuan panda bond in January this year. The project has previously been approved by the People's Bank of China, allowing Deutsche Bank to issue bonds with a total amount not exceeding RMB 8 billion in installments through the China Interbank Bond Market (CIBM) within two years after approval.
General Manager of Deutsche Bank China Zhu Tong, Chairman of Deutsche Bank (China) Limited, stated: The issuance of Panda bonds by the group once again demonstrates Deutsche Bank's confidence in China's growth potential and our firm commitment to continuously deepening our business in China. As a European funded bank that has long been committed to promoting the internationalization of the renminbi, Deutsche Bank will continue to assist global investors in actively seizing the development opportunities of the Chinese market, and cooperate with the continuous development and opening of the Chinese capital market to further expand the interaction between China and the global market Interconnection
In recent years, with the continuous optimization of regulatory regulations for panda bonds, the panda bond market has attracted more and more international issuers to participate. According to data from the People's Bank of China, the total amount of panda bonds issued in the interbank bond market and exchange market in the first 11 months of 2023 was 139 billion yuan, a year-on-year increase of over 60%, reaching a new high.
At the same time, the function and status of the renminbi as an international financing currency are constantly strengthening. In September of this year, the renminbi has jumped to become the world's second-largest trade financing currency.
Samuel Fischer, head of China's debt capital market at Deutsche Bank, said: "Under the attraction of stable financing environment and cost advantages, the number of overseas investors and issuers participating in China's debt capital market through Panda Bonds is increasing, and the composition of overseas investors and issuers is also becoming more and more diversified. As one of the leading foreign financial institutions actively participating in the opening and development of China's debt capital market, Deutsche Bank is optimistic about the development prospect and potential of RMB financing, and we will Fully support international issuers' business development and financing needs in China
The relevant person in charge of Deutsche Bank (China) Limited stated that the bank has a full license for underwriting business in the Chinese interbank bond market, which can provide comprehensive debt financing solutions for domestic and foreign issuers, and leverage the advantages of the global service network to play a bridging role in connecting domestic and foreign capital markets. Since the beginning of 2023, the bank has completed a total of 28 domestic bond issuances with a total underwriting scale of over 25 billion yuan for clients in the interbank bond market, including five panda bond projects.