On December 5th, Deutsche Bank Group ("Deutsche Bank") announced that it had successfully completed the second phase of panda bond issuance, with an amount of RMB 1 billion and a term of 3 years, as a senior priority bond. The net proceeds raised from this issuance will be used for the general corporate purposes of Deutsche Bank to support its related business activities and development.
It is reported that this transaction is the first German issuer Panda Bond after the third high-level financial dialogue between China and Germany, and also the second bond issuance after Deutsche Bank successfully issued its first 1 billion yuan Panda Bond in January this year. The project has previously been approved by the People's Bank of China, allowing Deutsche Bank to issue bonds with a total amount not exceeding RMB 8 billion in installments through the China Interbank Bond Market (CIBM) within two years after approval.
Zhu Tong, General Manager of Deutsche Bank China and Chairman of Deutsche Bank (China) Limited, stated that the group's reissue of panda bonds demonstrates Deutsche Bank's confidence in China's growth potential and its firm commitment to continuously deepening its business in China. As a European capital bank that has long been committed to promoting the internationalization of the renminbi, Deutsche Bank will continue to assist global investors in actively seizing the development opportunities of the Chinese market, and cooperate with the continuous development and opening of the Chinese capital market to further expand the connectivity between China and the global market.
In recent years, with the continuous optimization of regulatory regulations for panda bonds, the panda bond market has attracted more and more international issuers to participate. According to data from the People's Bank of China, the total amount of panda bonds issued in the interbank bond market and exchange market in the first 11 months of 2023 was 139 billion yuan, a year-on-year increase of over 60%, reaching a new high.
At the same time, the function and status of the renminbi as an international financing currency are constantly strengthening. In September of this year, the renminbi has jumped to become the world's second-largest trade financing currency.
Samuel Fischer, head of China's debt capital market at Deutsche Bank, said that, attracted by the stable financing environment and cost advantages, the number of overseas investors and issuers participating in China's debt capital market through Panda Bonds is increasing. While the number is increasing, the composition of overseas investors and issuers is also increasingly diversified. As one of the leading foreign financial institutions actively participating in the opening and development of China's debt capital market, Deutsche Bank is optimistic about the development prospect and potential of RMB financing, and will fully support the business development and financing needs of international issuers in China.
Data shows that from the beginning of 2023 to present, Deutsche Bank China has completed a total of 28 domestic bond issuances with a total underwriting scale of over 25 billion yuan for clients in the interbank bond market, including five Panda Bond projects.