Mobile Menu
Articles

Is the Rush to Panda Bonds Over?

Following the publication of relaxed regulations, there has been a steady stream of PRC issuers listed offshore looking to tap the local PRC debt markets with “Panda Bonds” issued domestically in the PRC by offshore entities.

This new breed of bonds are attractive to potential issuers as the coupon rate is much lower compared to U.S. Reg. S issues and are structured without a security package.

Demand for these bonds has also been driven by lower interest rates in China, coupled with a desire to hold debt in Renminbi due to the currency’s recent decline against the U.S. dollar. Reports indicate that approximately RMB115 billion in Panda Bonds have been issued from December 2015 to the end of March 2016, a significant portion by Chinese developers. That said, it has not been plain sailing with concerns rising over the protracted regulatory and procedural delays with Panda Bonds, and restrictions on the issuers’ ability to use offshore funds that have been raised domestically.

 

To continue reading full articles in PDF format:
Is the Rush to Panda Bonds Over?

 


Paul Lim
Partner

Hong Kong   +852 2842 9551


Rowan Wu
Legal Manager

Hong Kong   +852 2842 9554


Christopher W.H. Bickley
Partner, Head of Hong Kong Office

HONG KONG   +852 2842 9556


Accolades
_

"Few firms can come close to Conyers on one critical metric, and this is the breadth of the client base."
- IFLR1000

Related International Offices

Dubai
Hong Kong
London
Singapore


Media Contact

For media enquiries, please contact media@conyersdill.com

Articles

Is the Rush to Panda Bonds Over?

Following the publication of relaxed regulations, there has been a steady stream of PRC issuers listed offshore looking to tap the local PRC debt markets with “Panda Bonds” issued domestically in the PRC by offshore entities.

This new breed of bonds are attractive to potential issuers as the coupon rate is much lower compared to U.S. Reg. S issues and are structured without a security package.

Demand for these bonds has also been driven by lower interest rates in China, coupled with a desire to hold debt in Renminbi due to the currency’s recent decline against the U.S. dollar. Reports indicate that approximately RMB115 billion in Panda Bonds have been issued from December 2015 to the end of March 2016, a significant portion by Chinese developers. That said, it has not been plain sailing with concerns rising over the protracted regulatory and procedural delays with Panda Bonds, and restrictions on the issuers’ ability to use offshore funds that have been raised domestically.

 

To continue reading full articles in PDF format:
Is the Rush to Panda Bonds Over?

 


Paul Lim
Partner

Hong Kong   +852 2842 9551


Rowan Wu
Legal Manager

Hong Kong   +852 2842 9554


Christopher W.H. Bickley
Partner, Head of Hong Kong Office

HONG KONG   +852 2842 9556


 

International Office(s)

Dubai
Hong Kong
London
Singapore