OREANDA-NEWS. ICBC has issued as the lead manager the panda bond worth RMB 4 billion for Daimler in the interbank bond market. The bond was issued in private placement, which not only reduced the financing cost for the issuer, but also diversified structure of panda bond issuance.

Private-placement panda bonds are known as RMB bonds issued by foreign institutions to qualified investors or limited number of institutional investors in China, which can only be circulated among investors specified in the agreement with targeted information disclosure. By innovating financing service mode for foreign non-financial enterprises, ICBC may help businesses select favorable time window of bond issuance to better control financing cost.

China's capital market has witnessed deepening two-way opening since the inclusion of Yuan into SDR basket in 2015. In addition, a new regulation on panda bond issuance has been issued by the regulatory authority, which enlarges the scope of issuance bodies and simplifies the issuance flow, providing sufficient space for the rapid growth of panda bonds. Data shows that panda bonds issuance in China has totaled RMB 27.6 billion from the year to date, which is doubled than in the entire year of 2015.