{
    "success": true,
    "data": {
        "id": 1643494,
        "msgid": "uob-issues-rmb-5-billion-3-year-panda-bond-at-one-of-the-lowest-coupons-for-an-international-issuer-1774861313",
        "date": "2026-03-30 15:17:52",
        "title": "UOB issues RMB 5 billion 3-year Panda bond at one of the lowest coupons for an international issuer",
        "author": "",
        "source": "ANTARA_EN",
        "tags": "",
        "topic": "Finance",
        "summary": "United Overseas Bank (UOB) has issued a RMB 5 billion three-year Panda bond, marking its third such issuance since 2019 and the sixth by the group in the Chinese interbank market, underscoring its commitment to China's capital markets. The bond achieved a low coupon rate of 1.83 per cent, one of the lowest for international issuers excluding Hong Kong, with strong demand resulting in a 1.6 times subscription ratio from 78 per cent onshore and 22 per cent offshore investors. This issuance highlights the stability of the onshore RMB market amid global geopolitical volatility and UOB's strategy to deepen engagement with Chinese investors.",
        "content": "<p>UOB was the first Singaporean issuer and only Singaporean bank in the\nPanda bond market. This is the Bank\u2019s third Panda bond since its debut\nin 2019 and the sixth Chinese interbank bond offering by the Group,\nincluding issuances from UOB China, demonstrating the Group\u2019s\nlong-standing commitment to the capital markets in China. Our Panda bond\noffering in 2024 was the first time a bank listed a Panda bond on the\nSingapore Exchange (SGX). Similar to 2024, UOB will also apply for this\nbond to be listed on SGX subject to regulatory approval.<\/p>\n<p>This offering garnered strong demand with a subscription ratio of\n1.6x times from both onshore and offshore investors - 22 per cent of\nparticipation from offshore investors, with onshore investors taking 78\nper cent.<\/p>\n<p>This is the joint largest issue size for a three-year tenor among\nforeign bank issuers, equal to that attained by UOB in 2024. The size\nachieved is 1bn to 3bn larger than the equivalent 3Y tranches by other\nforeign bank peers earlier this year.<\/p>\n<p>The final coupon of 1.83 per cent represents a spread of 22 basis\npoints over the three-year China Development Bank benchmark bond yield.\nThe coupon and spread achieved is one of the lowest achieved by an\ninternational foreign bank (excl HK) Panda bond issuer to date.<\/p>\n<p>With USD markets largely closed due to geopolitical volatility, the\nonshore RMB market has remained stable, with onshore issuances remaining\nnormal and yields remaining compressed.<\/p>\n<p>Ms Koh Chin Chin, Head of Group Treasury, Research and Customer\nAdvocacy, UOB, said, \u201cWe\u2019re pleased to complete our CNY5 billion Panda\nbond issuance with strong investor support. As a repeat issuer, we\nappreciate the depth and resilience of the onshore RMB market, which has\nremained stable despite a challenging geopolitical backdrop. We remain\ncommitted to deepening our long\u2013standing engagement with China\u2019s RMB\ninvestor community and supporting the continued growth of the Panda bond\nmarket.\u201d<\/p>\n<p>Transaction highlights<\/p>\n<ul>\n<li><p>The trade was marketed with a range of 1.70 to 2.10 per cent saw\nstrong momentum with orderbooks reaching almost 6bn within 3 hours and\nmarginal rate decreasing from to 2.10 per cent to 1.84 per cent by 5pm.\nThere was a 1.1x cover ratio at the final coupon of 1.83%.<\/p><\/li>\n<li><p>Final orderbooks reached RMB 8.2 billion with a cover ratio at\n1.6x<\/p><\/li>\n<\/ul>\n<p>Geography:<\/p>\n<ul>\n<li><p>Onshore investors in China \u2013 78%<\/p><\/li>\n<li><p>Offshore investors \u2013 22%<\/p><\/li>\n<li><p>Banks \u2013 95%<\/p><\/li>\n<li><p>Securities firms \u2013 5%<\/p><\/li>\n<\/ul>\n<p>Source: UOB<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/uob-issues-rmb-5-billion-3-year-panda-bond-at-one-of-the-lowest-coupons-for-an-international-issuer-1774861313",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}