Asian Development Bank launches Panda bonds

The Asian Development Bank (ADB) has filed an application for its debut renmimbi bond issue to the People’s Bank of China (PBOC).

Called the Panda bonds, the ADB will launch the renminbi issue in the domestic bond market of People’s Republic of China (PRC) once approval is obtained from PBOC and subject to market conditions. The bonds will be issued in the interbank market through a syndicate of underwriters lead managed by BOC International (China) Ltd.

The filing is in response announcement by the PRC allowing ADB to issue renminbi-denominated bonds in the PRC.

"This is a major step forward in the development of the PRC’s capital market," Mikio Kashiwagi, ADB’s treasurer said. The Manila-based lending agency will use the proceeds of the bonds to provide its clients in the PRC with local currency financing.

ADB has a long-standing tradition of undertaking market-opening transactions in the region’s domestic bond markets including Japan; Republic of Korea; Taipei, China; India; Malaysia; and Thailand.

The planned issue will represent another milestone in ADB’s quest to develop the region’s bond markets. Given ADB’s AAA ratings by Fitch, Moody’s, and S&P, the issue will provide investors with the highest quality investment opportunities. It will also introduce international best practice as well as demonstrate the readiness of the PRC bond market for issuance by foreign issuers.