Deutsche Bank’s Panda Bond Shows Market’s Appetite for Low-Cost Yuan Debt

What’s new: Deutsche Bank AG has issued the largest panda bond by a financial institution in six years, as China’s interest rate cuts have lowered the cost of yuan-denominated debt, making it more appealing to overseas businesses.

The issuance of two-year senior preferred notes raised 3 billion yuan ($415 million) and drew in an order book of more than 8 billion yuan, Deutsche Bank announced in a statement Thursday. This is the lender’s third panda bond issuance.