Earlier this week on October 21, United Abroad Financial institution (UOB) issued its second onshore Panda bond. At Rmb5 billion ($700 million) it was priced at a mid-range of two.3%.
This was inside the preliminary value vary of two.05% and a pair of.65% and was 46 foundation factors above the thre three 12 months China Improvement Financial institution (CBF) benchmark bond yield.
FinanceAsia understands from a Hong Kong-based senior banking supply near the deal that the plan is to record the bond on the Singapore Change (SGX), topic to regulatory approval. FA additionally understands that UOB, which issued its first onshore panda bond in 2019, can also be the one Sinagaporean financial institution working within the panda bond market.
In line with the supply, to be able to entice buyers, a “non-deal advertising train” was carried out in Beijing, Shanghai, Shenzhen and Hong Kong, in the midst of 2024 throughout the summer time.
64% of the buyers in panda bond are from mainland China, whereas 36% of them are iinvestors from offshore. By way of the varieties of buyers, banks had an 80% attribution, securities funds 12% and wealth administration funds 8%; out of all of the buyers, 20% of the buyers are new buyers, FA understands.
UOB mandated Financial institution of China as lead bookrunner and lead underwriter on the deal.
The joint bookrunners and joint lead underwriters on the issurance have been: China Building Financial institution; China Securities; China Zheshang Financial institution; CITIC Securities; Deutsche Financial institution (China); Fubon Financial institution (China); Industrial and Industrial Financial institution of China (ICBC); Industrial Financial institution; Commonplace Chartered Financial institution (China); and Sumitomo Mitsui Banking Company (China).
Panda bonds have been rising in popularity in recent times, and earlier this 12 months the Shangri-La resort group issued the primary Panda bond for a Hong Kong-listed hospitality group.
¬ Haymarket Media Restricted. All rights reserved.