CDB News

CDB's First Offering of Panda Bond via "Bond Connect”

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Time:2017-07-24  Source:CDB

RMB 1 billion in bonds underwritten by CDB for MayBank through China’s “Bond Connect” program was issued in the interbank bond market on July 21. With a term of three years and a coupon rate of 4.6%, the bonds have been actively subscribed by various institutional investors both at home and abroad. The successful offering of this bond, the only Panda bond among the first batch of debt securities issued via the “Bond Connect” program, further promotes financial cooperation between domestic and foreign institutions and the connectivity of the bond market, and makes CDB the only institution assuming dual functions, i.e. issuer of financial bonds, and principal underwriter of the Panda bond and debenture bonds.

The pragmatic bond underwriting cooperation between CDB and MayBank is one of the achievements of this year’s Belt and Road Forum for International Cooperation. The successful issuing of the bonds marks a satisactory achievement and the funds raised will be used to support the “One Belt, One Road” initiative. A portion of the funds will be directly used in the form of the local currencies of project countries.

To actively seek foreign participation in “Bond Connect” by offering convenience for overseas institutions, the prospectus, legal opinion and other documents detailing the bonds are available in both Chinese and English. The amount of overseas orders has thus been over 20%. CDB sets an example for overseas issuers by playing the role of a principal underwriter in helping MayBank to issue RMB bonds in China’s interbank bond market for international investors.

Before that, CDB already launched its first offering of “Bond Connect” – RMB 20 billion financial bonds to both domestic and overseas investors, with overseas orders reaching nearly RMB 10 billion, marking a series of breakthroughs as compared with other offerings of the kind: the largest in size with the lowest cost of issue, the largest number of overseas subscription orders, and participation by the largest number of overseas investors.

MayBank is Malaysia’s largest financial services organization with assets of MYR 736 billion (USD 172 billion), operating 2,400 branches in 20 countries, including China, with international credit rating of A- by S&P, A3 by Moody’s, A- by Fitch, and domestic credit rating of AAA by CCXI.

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