Deutsche Bank announced the issuance and pricing of a RMB 3.5 billion multi-tranche Panda bond in the China Interbank Bond Market (CIBM).

The offering, comprised of a CNY 2.5 billion three-year tranche and a CNY 1 billion five-year tranche, was priced with final coupon rates of 1.72% and 1.94% respectively. This represents pricing that is 21 basis points tighter than the bank’s previous issuance in early March. The deal was significantly oversubscribed, with the three-year tranche achieving a 1.95x subscription rate and the five-year tranche a 2.59x rate.

“This issuance is a powerful testament to our commitment to being the Global Hausbank for our clients in China. As a bridge connecting China with global markets, we are dedicated to injecting new momentum into Sino-German and Sino-European economic and trade cooperation,” said Rose Zhu, Deutsche Bank China Chief Country Officer.

“Deutsche Bank’s active participation in the Panda bond market both as an issuer and a premier underwriter not only highlights our firm confidence in China’s long-term development but also continuously deepens our onshore business capabilities. This enables us to provide leading solutions and services for our clients to seize opportunities arising from the ongoing opening of China’s financial markets,” Rose said.

Fiona Ip, Head of APAC Treasury at Deutsche Bank, commented: “In the current global interest rate environment, strategically diversifying funding channels is crucial. This issuance allows us to efficiently tap China’s deep and highly liquid onshore market. It reflects robust investor confidence in Deutsche Bank’s credit strength and establishes the renminbi as a key component of our global funding, supporting our sustainable growth.”