11 June 2021

HSBC leads Bond-Connect-eligible corporate Panda bond

HSBC was joint bookrunner and joint lead underwriter on RMB 1.5bn of Panda Commercial Paper, and sub-underwriter on RMB 2.0bn of Panda Medium Term Notes, for BMW. Priced on 10 June 2021, the issuance into the China Interbank Bond Market (CIBM), was the first publicly-syndicated Panda bond issuance from a foreign multinational corporation.

Where Panda bonds have typically been privately placed to a limited group of investors, the publically-syndicated nature of this transaction meant it was open to all qualifying institutional investors with CIBM Direct, Bond-Connect and Qualified Foreign Investor accessibility, maximising both domestic and international investor participation. As a result, approx.. 50% of orders came from outside mainland China.

Ingo Nolden, head of DCM and corporate finance at HSBC Germany, said:

“The opportunities for global issuers in China’s onshore bond markets are huge. Panda bonds are an ever more accessible and efficient way for [German/international] corporates to finance their operation and growth in China. As this deal shows, they are also increasingly a way for firms to reach a diverse set of international investors focused on China’s immense growth story.”

Timothy Yip, head of China onshore debt capital markets at HSBC, said:

“We are honoured and delighted to have played a key role in such a monumental transaction. It demonstrates the increasing depth and maturity of China’s onshore RMB bond market, which is already the second largest in the world. Thanks to ongoing efforts by regulators and relevant authorities to develop the Panda bond market, global issuers with RMB financing needs or operations in China now have more channels to optimise asset and liability structures, while offering an attractive investment proposition for international investors.”

The transaction follows recent structural reforms designed to further liberalise and open up the Panda bond market, alongside encouraging further production innovation.

HSBC has supported a wide range of issuers in raising over RMB37 billion of capital in the Panda bond market in recent years, from sovereign and supranational issuers to European corporates.


Jens Friedrich

Über HSBC Deutschland
HSBC Deutschland ist Teil der HSBC-Gruppe, einer der führenden Geschäftsbanken der Welt mit Assets in Höhe von 2.959 Milliarden US-Dollar (Stand 31. März 2021). Sie ist die „Leading International Bank“ und verfügt über ein Netzwerk in 64 Ländern und Territorien weltweit, die für über 90 Prozent der Weltwirtschaftsleistung stehen. Kunden von HSBC Deutschland sind Unternehmen, institutionelle Kunden, der öffentliche Sektor und vermögende Privatkunden. Die Bank steht für Internationalität, umfassende Beratungskompetenz, große Platzierungskraft, erstklassige Infrastruktur und Kapitalstärke. HSBC Deutschland, die als HSBC Trinkaus & Burkhardt AG firmiert, wurde im Jahr 1785 gegründet und beschäftigt in Düsseldorf und an elf weiteren Standorten rund 2.900 Mitarbeiter.