Deutsche Bank Issues Record RMB 5.5B Panda Bond in China

Deutsche Bank has priced and issued a 5.5 billion renminbi (RMB) multi-tranche Panda bond in the China Interbank Bond Market. The transaction marks the first Panda bond issuance in 2026 by a European Union financial institution and stands as the largest single Panda bond issuance by a foreign bank on record.

The deal also marks the bank’s return to the market after its first Panda bond offering in 2023, signaling plans to maintain a regular presence in China’s domestic bond market.

The issuance comes at a time when global capital markets have faced heightened volatility, while China’s onshore RMB market has continued to offer relatively stable issuance conditions. The transaction attracted strong investor interest, with total orders reaching RMB 8.66 billion.

Deutsche Bank Issues Record RMB 5.5B Panda Bond in China

The bond was issued in two tranches. The 3-year tranche and the 5-year tranche both recorded strong demand, with oversubscription levels of 1.55 times and 1.63 times, respectively. Final coupon rates were at 1.95% for the 3-year notes and 2.13% for the 5-year notes.

Investors in the transaction included commercial banks, asset managers, and overseas institutional investors. The mix reflects continued investor confidence in Deutsche Bank’s credit profile and broader global interest in renminbi-denominated assets.

Fiona Ip, APAC Treasurer at Deutsche Bank, said the bank was happy to return to the Panda bond market with the record-size issuance. She noted that the transaction forms part of the bank’s strategy to diversify global funding sources while accessing liquidity in China’s domestic RMB market.

According to Ip, strong demand from investors highlights the development of China’s onshore bond market and its role within the bank’s global funding and capital management framework.

Rose Zhu, Chief Country Officer for China at Deutsche Bank, said the issuance reflects investor confidence in the bank’s credit profile and long-term strategy. She added that the deal also shows growing interest in the RMB bond market among a diverse group of investors.

Deutsche Bank has participated in China’s bond market for many years as both an issuer and an underwriter, supporting cross-border capital market access through its international network.

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