Panda bond market finally looks set to move past its publicity phase

Hong Kong

THE panda bond market, part of China's drive to open its domestic capital markets by encouraging foreign firms to issue onshore bonds denominated in yuan, may finally be on the verge of serving its intended purpose after a long spate of deals done largely for publicity reasons.

Singapore-listed Global Logistic Properties is eyeing offerings of panda bonds to strengthen its market position in the country after securing a number of deep-pocketed Chinese strategic investors in 2014.

GLP, which has large business operations in China, stands apart from most earlier panda issuers in that it has a real need for Chinese yuan to support its business in the mainland.

It would also be the first foreign issuer to launch panda bonds in both the stock exchange market and the interbank market, which is seen as an indication of its resolve as issuance thresholds are more string…