Media Release
April 11, 2024
Deutsche Bank Issues Largest Panda Bond for a Financial Institution since 2018
European issuers have played an important role in Renminbi (RMB) financing, accounting for close to 20% of total panda bond issuance since 2005
Deutsche Bank announced today that it has issued its third panda bond, raising3 billion renminbi (415 million US dollars) via 2-year Senior Preferred notes. The transaction attracted an orderbook of over 8 billion renminbi (1.1 billion US dollars). It drew robust investor demand and priced attractively versus existing Deutsche Bank debt.
This marks the largest panda bond issuance by a financial institution since 2018. The proceeds of this transaction will be used for general business activities and development.
Panda bonds are bonds issued by foreign entities in mainland China, allowing them to tap into the domestic RMB bond market.
Deutsche Bank’s CEO for Asia Pacific, Europe, Middle East & Africa (EMEA) and Germany and Member of the Management Board, Alexander von zur Muehlen said: “Deutsche Bank is proud of its longstanding track record of driving international participation in China’s onshore bond market, both through supporting our clients with landmark transactions and executing our own funding strategy."
Deutsche Bank continues to play an active role in supporting the internationalization of the RMB and continuous opening-up of the capital markets in China. As a result, the bank has been the leading foreign bank for NAFMII-registered bonds¹ in the China interbank bond market for the past four consecutive years, including local and panda bond issuers.
2023 saw historic levels of issuance for the panda bond market, with activity set to continue throughout this year.
Samuel Fischer, Deutsche Bank Head of China Onshore Debt Capital Markets said: “It has been a positive start to the year for the panda bond market, with RMB 61 billion² of issuance in the first three months. We continue to see strong levels of interest from both European and Emerging Market issuers, looking to tap into the market.”
Following the bank’s successful issuances throughout 2023, this marks the third issuance from the bank which adheres to the pre-approved program by the People’s Bank of China (the “PBOC”). The program allows Deutsche Bank to issue RMB bonds in an aggregate principal amount of up to 8 billion renminbi (1.13 billion US dollars) periodically in up to two years, upon approval from China’s interbank bond market (CIBM).
This issuance follows Deutsche Bank’s successful return to the Singapore Dollar bond market last month.
*Note: Various US dollars figures in this article are converted based on time of the transactions.
¹National Association of Financial Market Institutional Investors (NAFMII) is a self-regulatory organisation that promotes the development of China’s Over-The-Counter (OTC) market, where securities are trade via a broker dealer instead of on a centralised exchange.
²Data source : Wind
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.
About Deutsche Bank
Deutsche Bank provides commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small and medium-sized businesses, and private individuals. Deutsche Bank is Germany’s leading bank, with a strong position in Europe and a significant presence in the Americas and Asia Pacific.
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) 2024 Deutsche Bank AG
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