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BNP Paribas China receives licence to underwrite Corporate Panda Bonds for foreign issuers

  • 10.12.2018

BNP Paribas China Limited today announced that it has received the Panda Corporate Bond Lead Underwriting Licence Type B from China’s National Association of Financial Market Institutional Investors.

The licence allows BNP Paribas China to act as a lead underwriter on renminbi-denominated bonds, also known as Panda Bonds, issued by foreign corporate issuers.

CG Lai, BNP Paribas China’s Deputy Chief Executive Officer, said: "The licence is significant as China continues to promote its domestic bond market. With the growing maturity of multi-national corporations’ operations onshore in China, foreign parent companies are increasingly seeking to tap the domestic bond market as an important and highly cost-effective source of RMB funding to support their Chinese expansion needs."

"With this licence, BNP Paribas China can also help international issuers to tap the world’s largest RMB liquidity market for their offshore projects, which is key to promoting the RMB’s internationalisation," said Mr Lai.

BNP Paribas is only the third international bank to receive such a licence. The bank was previously licenced to act as an advisor and syndicate member for corporate Panda Bonds, participating in issuances for a number of MNC clients as more foreign companies look to fund their onshore activities in China in RMB.

George Sun, Head of Global Markets for Greater China, said: "This senior underwriting licence will help us to attract more foreign issuer participation in China’s bond market. This will help widen the issuer pool beyond Chinese issuers, as well as increase inbound foreign investment. We see this as a significant step forward in China’s financial market liberalisation."

BNP Paribas’ presence in China dates back to 1860 when it opened its first office in Shanghai. Today, with nearly 500 staff based in China, BNP Paribas provides banking, financing and advisory services via its Corporate & Institutional Banking and international financial services.

 BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 73 countries, with more than 196,000 employees, including around 149,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance.

In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the European leader in consumer lending.

BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.

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Sarah Worsley
Sarah Worsley
Corporate & Institutional Banking | Corporate & Finance
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