Fangda represented the Asian Development Bank (ADB) on its RMB2 billion panda bond offering on China’s interbank bond market, issued on March 10, 2021. It is:

• the first panda bond issued by an international development institution following the implementation of new panda bond rules for foreign governments and international development institutions at the end of 2020 in China
• ADB’s largest-ever borrowing in an Asian local currency

In 2005, ADB became the first issuer in the panda bond market, and returned for a second 10-year panda bond issuance with the same amount in 2009. ADB has been a pioneer in adopting new financing instruments for its operations in the PRC.

The issuance received extraordinary support from both onshore and offshore investors (including through the Bond Connect Regime), including a two-thirds take-up by international investors. The bond pays a 3.2% annual coupon, features a 5-year bullet maturity, and is priced at 21 bps lower than China Development Bank bonds. As an AAA-rated issuer recognized by international credit rating agencies, the issuance reflects ADB’s strong credit fundamentals.

Fangda provided the full range of transaction services and legal advice to ADB in its bond application, and registration and issuance, as well as drawing up all transaction documents and other related documents. The Fangda team was led by partner Christine Chen.