Why Panda Bond?
Riding on the continual development of China Interbank Bond Market and Bond Exchange Market, Panda Bond has been growing rapidly in terms of the number of bonds issuance and amount of fund raised, with its strong growth momentum maintained.
Short Execution Timeframe
The investors of Panda Bond consist mainly of commercial banks, funds, insurance companies and securities houses, and they are very active in both Interbank Bond Market and Bond Exchange Market. On the back of their strong capital base, these investors are able to provide solid support in the issuance of Panda Bonds. We have direct access to this diverse investor base, leading to an efficient and effective execution of bonds issuance.
The high liquidity inherent in China’s bond market results in lower costs of funding for issuers, comparing with the USD market. By creating healthy and competitive tension among investors for the bond offering, we are able to drive the pricing further down.
Domestic rating agencies in China are more familiar with China markets and local practices than those international rating agencies. Therefore, credit assessment can be performed properly in a flexible way without compromising on the quality. Over the years, we have established mutual trust and close relationships with the domestic rating agencies in China and it will definitely help companies highlight their credit strengths and ultimately achieve the desired credit ratings.
The fundraising amount can be as high as tens of billions of renminbi, thanks to the huge and highly liquid Panda Bond market, with market size reaching RMB132bn in 2016, which is comparable to the overseas USD bond market.
Flexible Use of Funds
Funds raised can be used flexibly, either onshore or offshore, for the purposes of working capital, refinancing, construction projects, urban planning, as well as M&A, etc. We would assist companies in developing a comprehensive fund use plan to satisfy both business needs and expectations from investors.