(Yicai Global) March 13 -- United Overseas Bank has priced Singapore's first Panda bond, which is a Chinese yuan-denominated bond from a non-Chinese issuer. It is only the second time that such a bond has been issued in Southeast Asia.
The multinational commercial lender issued the three-year CNY2 billion (USD297 million) bond in China's inter-bank bond market at a coupon rate of 3.49 percent, state-backed Xinhua News Agency reported, adding that it has a 2.7 times subscription rate from asset managers and commercial bank investors across the continent.
The bond boasts an AA international rating and a Chinese domestic rating of AAA. The Bank of China acts as lead underwriter and lead bookkeeping manager.
The move marks the first issuance of a panda bond by a financial institution since the People's Bank of China and the finance ministry jointly released new national interbank bond issuance measures last September.
The successful issuance of this bond can help enrich and diversify financing channels for UOB, strengthen the interconnection of financial markets between China and Singapore, and promote the opening-up of China's capital market and the internationalization of the yuan, the Xinhua report said.
Editor: William Clegg