(Yicai Global) July 24 -- The USD150 million (CNY1 billion) panda bonds of Malayan Banking Bhd [KL:MBBM] (Maybank), with China Development Bank Corp. as principal underwriter were successfully issued via the Bond Connect program on July 21, Financial News, a central bank-affiliated Chinese newspaper, reported today.
With a term of three years and a coupon rate of 4.6%, the bonds have been actively subscribed by various institutional investors both at home and abroad.
The successful issuance of this bond, the only panda bond among the first batch of debt securities issued via the Bond Connect program, further promotes financial cooperation between domestic and foreign institutions and the interoperability of the bond market, and makes China Development Bank the only institution assuming dual functions, i.e. as both bond issuer and lead underwriter.
The pragmatic bond underwriting cooperation between China Development Bank and Maybank is one of the achievements of this year's Belt and Road Forum for International Cooperation. The bonds' successful issue shows the achievement has been satisfactorily implemented and the proceeds will all apply to support Belt and Road construction. A portion of the take will also be directly used in the form of the local currencies of project countries.
To actively seek the foreign participation in the Bond Connect by offering convenience for overseas institutions, the prospectus, legal opinion and other documents detailing the bonds are available in both Chinese and English. The amount of overseas orders has thus far been over 20%.