China’s panda bond market has seen its first
North American issuer, but the deal’s success does
not necessarily reflect a relaxed regulatory environment for
The National Bank of Canada (NBC) has successfully issued an
onshore triple A-rated RMB5 billion ($729 million) panda bond
after more than a year of stagnation in the panda bond market.
It has made the NBC the world’s first North
American and truly foreign financial institution to have
publicly issued a renminbi-denominated (RMB) debt in
China’s interbank bond market (CIBM).
But the deal is believed to have been facilitated by Chinese
Premier Li Keqiang’s earlier visit to Canada,
suggesting this was not a clear sign of the authorities
lowering regulatory thresholds on panda bond
"Would a normal issuer from North America and Europe seeking
to issue panda bonds by way of a public offering...