DBS widens foreign access to China’s interbank bond market with new licence to underwrite non-financial corporate bonds
Singapore, China, Hong Kong, 14 Feb 2024 - DBS China has received a licence from China’s National Association of Financial Market Institutional Investors to underwrite debt financing instruments for non-financial enterprises, including foreign issuers, in the China Interbank Bond Market.
As the first Southeast Asian headquartered bank to secure this licence, non-financial enterprises outside of China can now leverage DBS’ track record in helping foreign governments and agencies, supranational organisations, and financial institutions tap the world’s second-largest bond market.
In 2023, DBS China was the joint lead underwriter for RMB 16.5 billion (SGD 3.1 billion) of Panda bonds
[1]
issued in the China Interbank Bond Market, accounting for over 10% of the RMB 140 billion (SGD 26.2 billion) market that year. This cemented DBS China as the most active foreign bank for Panda bonds in the China Interbank Bond Market, a pole position the bank has held since 2021.
Foreign issuers are increasingly tapping China’s bond markets for financing. According to Chinese financial data provider Wind Information, issuance of Panda bonds in the China Interbank Bond Market last year hit a record RMB 140 billion (SGD 26.2 billion), an almost 70% jump from RMB 83 billion (SGD 15.5 billion) in 2022.
Ginger Cheng, CEO of DBS Bank (China), said: "The growth of Panda bond issuances highlights the domestic bond market’s depth and rising international standing, driven in part by the government’s initiatives to internationalise its financial markets. As one of the first foreign banks to participate in the China Interbank Bond Market, our new underwriting licence expands DBS’ existing capabilities and networks in helping both foreign and local issuers access this attractive market.”
Clifford Lee, Global Head of Fixed Income, DBS Bank, said: “DBS has supported several multilateral development banks, foreign governments and European financial institutions to issue Panda bonds, some of which were inaugural issuances. These also include Panda bonds with green, sustainable and social labels, underscoring the Chinese capital market’s growing sophistication and ability to finance the global transition towards a more sustainable future.”
DBS China has established itself as one of the top foreign banks in underwriting onshore debt financing instruments. Some of its milestone achievements include:
Participating in RMB 248.7 billion (SGD 46.5 billion) of bond issuances in the China Interbank Bond Market last year, including Supranational, Sovereign, and Agency (SSA) Panda bonds, financial institution Panda bonds, financial bonds
[2]
and local municipal bonds.
Underwriting the first green financial bond issued by a foreign bank
Bringing the first financial institution issuer from Korea to the China Interbank Bond Market
Acting as the only non-affiliated foreign lead underwriter for eight Panda bond and financial bond issuances last year
DBS China received awards by the Shanghai Stock Exchange in 2021 and Shenzhen Stock Exchange in 2023 year for its performance in municipal bonds.
[1]
Panda bonds are a common term for renminbi-denominated debt issued in China’s onshore market by non-Chinese companies, governments and organisations.
[2]
Financial bonds refer to renminbi-denominated debt issued in China’s onshore market by onshore subsidiaries of foreign financial institutions.
All exchange rates as of 13 February 2024
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About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “
World’s Best Bank
” by Global Finance, “
World’s Best Bank
” by Euromoney and “
Global Bank of the Year
” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “
World’s Best Digital Bank
” by Euromoney and the world’s “
Most Innovative in Digital Banking
” by The Banker. In addition, DBS has been accorded the “
Safest Bank in Asia
” award by Global Finance for 15 consecutive years from 2009 to 2023.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit
www.dbs.com
.
DBS Bank Ltd | 12 Marina Boulevard, DBS Asia Central @ Marina Bay Financial Centre Tower 3,
Singapore 018982 | Co. Reg. No. 196800306E
Tel: 65.6878 8888 | www.dbs.com
