BNP Paribas gets corporate Panda bond underwriting licence

[SHANGHAI] BNP Paribas said on Monday it had received a licence to be the lead underwriter for yuan-denominated bonds from foreign non-financial corporate issuers in China, known as Panda bonds.

BNP Paribas China Ltd received a Panda Corporate Bond Lead Underwriting Licence Type B licence from China's National Association of Financial Market Institutional Investors (NAFMII) on Dec 7, the bank said in a statement.

It follows HSBC and Standard Chartered as the third bank to receive lead underwriting licences for non-financial corporate Panda bonds.

"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," George Sun, head of Global Markets for Greater China, said in the statement.

The combined value of outstanding bonds issued by offshore institutions in China's interbank market was four billion yuan (S$795.2 million) at the end of November, according to data from China Central Depository and Clearing Co (CCDC), the country's primary bond clearing house.

Interest in Panda bonds among issuers has been limited in part because of unclear rules over issuer qualification and the movement of proceeds, though authorities have taken steps in recent months to clarify regulations.

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REUTERS