Themen:
Media Release
December 6, 2023
Deutsche Bank announced today that it has issued its second Panda Bond, raising a total of 1 billion yuan (141 million US dollars) via 3-year Senior Preferred notes. The net proceeds will be used for Deutsche Bank’s general business activities and development.
It’s the first panda bond launched by a German issuer after the 3rd China-Germany High-Level Financial Dialogue. Following the bank’s successful debut of an onshore renminbi bond worth 1 billion yuan (around 143 million US dollars*) in January 2023, this is also the second issuance from the bank which adhered to the pre-approved program by the People’s Bank of China (the “PBOC”). The program allows Deutsche Bank to issue renminbi bonds in an aggregate principal amount of up to 8 billion yuan (1.13 billion US dollars) periodically in up to two years, upon approval from China’s interbank bond market (CIBM).
Rose Zhu, China Chief Country Officer said: “The second issuance of our own Panda Bond underscores our confidence in China’s growth potential and our strong commitment to continuously developing our business here.” she added,
China has made continuous progress with improving its regulatory framework for Panda Bonds. As a result, issuance of panda bonds in the first eleven months of 2023 reached a record high of 139 billion yuan (20 billion US dollars), up more than 60% from last year.
Renminbi is also gaining ground as a global funding currency after it became the second most used currency in international trade finance in September 2023.
Samuel Fischer, Head of China Onshore Debt Capital Markets said: “Attracted by a stable funding environment and the cost advantages that the China onshore market offers, we’ve seen higher demand and an increasingly diverse pool of investors and issuers accessing China’s debt capital market through Panda Bonds. We expect the momentum of renminbi financing to remain strong in the near-to-medium term. As a leading institution in China’s debt capital markets, we are fully committed to contributing to renminbi internationalisation and will continue to support foreign issuers with financing their business development in China.”
Deutsche Bank China is fully licensed as lead underwriter in the CIBM which allows the bank to provide debt issuance solutions to both local and foreign issuers, and better play a role in connecting China with global markets.
In 2023, Deutsche Bank China has completed 28 bond issuances for both domestic and international clients to date, including 5 panda bond issuances on CIBM so far, with the total value exceeding 25 billion yuan (3.4 billion US dollars). Since 2020, the bank has been the top international bank for bonds registered with National Association of Financial Markets Institutional Investors (NAFMII), which is the local bond market regulator overseeing corporate and SSA issuers.
*Note: Various US dollars figures in this article are converted based on time of the transactions.
For further information, please contact:
Deutsche Bank China
Media Relations
Flora Tian
Phone: +86 10 5969 8617
E-mail: flora.tian@db.com
About Deutsche Bank China
Deutsche Bank first established a presence in China in 1872 with the opening of its first overseas office in Shanghai. Headquartered in Beijing, Deutsche Bank China completed local incorporation in 2008. Deutsche Bank has a regional hub in Hong Kong SAR.
Through rapid organic growth and strategic investments, Deutsche Bank’s core global businesses are all active in China. These include corporate advisory and capital markets, transaction banking, as well as asset and wealth management.
On the asset management front, Deutsche Bank holds a 30% strategic investment in Harvest Funds Management - one of the country’s leading investment managers.
In July 2009, the joint venture between Deutsche Bank and Shanxi Securities – Zhong De Securities Co. Ltd. – received a securities business license from the China Securities Regulatory Commission (CSRC). Zhong De Securities is currently approved to underwrite and sponsor stocks and bonds (including A-shares, foreign investment shares, government bonds, and corporate bonds), as well as provide corporate advisory services in the domestic capital market. Deutsche Bank holds a 33.3% ownership in the joint venture.
For more information about Deutsche Bank China: https://china.db.com
This press release has been approved and/or communicated by Deutsche Bank AG or by its subsidiaries and/or affiliates (“DB”). Deutsche Bank AG is authorized under German Banking Law (competent authority: BaFin - Federal Financial Supervisory Authority) and by the Prudential Regulation Authority and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our authorization and regulation by the Prudential Regulation Authority, and regulation by the Financial Conduct Authority are available from us on request. Securities and investment banking activities in the United States are performed by Deutsche Bank Securities Inc., member NYSE, NASD and SIPC, and its broker-dealer affiliates. Lending and other commercial banking activities in the United States are performed by Deutsche Bank AG, and its banking affiliates. Copyright (C) 2022 Deutsche Bank AG
Further links on the topic
Raising renminbi - panda or dim sum?
Deutsche Bank raises 1 billion yuan via first Panda Bond
Deutsche Bank in Asia Pacific
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