BEIJING, March 21 (Xinhua) -- The Bank of China (BOC) as the lead underwriter and lead bookrunner has successfully assisted Singapore's United Overseas Bank Limited (UOB) to issue 2 billion yuan worth of Panda bond on the Chinese inter-bank bond market, according to the bank source.
It is the first Panda bond issued by Singaporean issuers . The UOB's RMB bond offers a contract rate of 3.49 percent, one of the lowest rates among all Panda bonds issued to date, and the issuance are rated AAA by China Chengxin International Credit Rating Co., Ltd with a stable outlook.
The three-year 2 billion yuan bond offering garnered strong demand with a subscription rate of 2.7 times from assets manager and commercial bank investors across Asia.
The issuance of the panda bond makes UOB the first Singapore entity to successfully tap the onshore bond market in China, such cross-border issuance would expand financing channels and strengthen capital market connectivity between China and Singapore.
Meanwhile, the debut Panda bond issuance is expected to tap the increased connectivity between China and ASEAN countries arising from the Belt and Road Initiative (BRI) to serve the customer’s needs. (Edited by Jiang Feifan)
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