KUALA LUMPUR: CIMB Bank Bhd has debuted its RMB3 billion three-year Panda bond in the China Interbank Bond Market, carrying a fixed coupon rate of 2.18%.
The offering marks the largest single-tranche issuance by a Malaysian institution to date.
In a statement, CIMB said the Panda Bond with a robust order book of RMB4.64 billion saw a notable deepening of CIMB’s investor base, attracting a broad base of onshore and offshore institutional investors.
The Panda bond also represents the second-largest issuance to date by an Asean issuer and achieved the lowest coupon rate ever secured by an Asean issuer.
CIMB said the Panda bond was assigned an AAA rating by China Chengxin Credit Rating Group (CCXI). The net proceeds will be used to expand CIMB Bank’s local and cross-border businesses, strengthening regional trade and finance across key sectors.
A portion of the proceeds will be retained onshore to reinforce CIMB’s business development in China, underscoring CIMB’s commitment to the Chinese market.
“We are pleased to see strong demand from investors for our RMB3.0 billion Panda Bond issuance in China’s Interbank Bond Market, which marks the largest single-tranche issuance by a Malaysian issuer to date. It reflects the confidence in CIMB’s diversified Asean franchise and financial strength,” group CEO Novan Amirudin said.
“In line with our Forward30 roadmap, this reaffirms our commitment to reallocate resources for infrastructure and sustainable development projects that deliver long-term value and sustainable growth across China, Malaysia and the wider Asean region.
“This significant milestone reinforces CIMB’s role as a bridge between China and Asean, adding momentum to our efforts to accelerate financial integration and promote cross-border investment and trade,” he added.
CIMB collaborated with a consortium of 11 Chinese, regional, and international financial institutions to complete the Panda bond issuance.
