Amidst the instability of global markets, the bond market in China is functioning confidently.
The Asian Infrastructure Investment Bank (AIIB), located in Beijing, has announced the issuance of panda bonds totaling 3 billion yuan (approximately $434.9 million), with both the subscription volume and the number of investors reaching record levels.
According to the bank, the bonds are issued for a three-year term, with a coupon rate of 1.7 percent. A total of 34 investors subscribed to the bonds, with the total subscription amount reaching 9 billion yuan. Due to high demand from investors, the issuance volume was increased from the initially planned 2 billion to 3 billion yuan.
Foreign investors purchased 58 percent of the issued bonds, while Chinese investors acquired the remaining 42 percent.
As noted by the acting Chief Financial Officer of AIIB, Domenico Nardelli, amidst the instability of global markets, the Chinese bond market is functioning confidently and continues to demonstrate high attractiveness for quality issuers.
AIIB began its operations in 2016 and currently has 111 members worldwide. To date, the bank has already conducted eight issuances of panda bonds totaling 19.5 billion yuan.
Panda bonds are debt securities denominated in yuan and issued by foreign issuers in China. They serve as an important financing channel for international institutions.
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