The National Bank of Canada (NBC) has issued a Rmb3.5 billion ($518 million) panda bond, the first North American financial institution to do so.
Chinese renminbi-denominated bonds from a non-Chinese issuer, or panda bonds, were first issued in 2005 but Canadian issuers have had little need for Rmb funding until now.
The three year bonds were priced at 3.05% and may be significant for the future development of the panda bond market.
The underwriters, who had no external legal representation, included China Merchants Securities, Standard Chartered Bank (China), Agricultural Bank of China, Industrial and Commercial Bank of China, and the Bank of China.
The panda bond market shows the increasing financial integration between mainland China and the global markets.