National Bank can now issue Panda Bonds

National Bank of Canada says it has been authorized by the People’s Bank of China (PBoC) to establish a bond program to issue up to RMB5 billion (approximately CAD$1 billion) in the form of bonds commercially known as Panda Bonds.

Panda Bonds are renminbi-denominated bonds issued by non-Chinese issuers in the PBoC. In its efforts to liberalize China’s currency, the PBoC recently decided to open the Panda Bond market. And already, a small number of high-quality sovereign and corporate issuers have accessed this market.

National Bank of Canada may become the first financial institution in North America and the second Canadian entity–after the province of British Columbia–to access one of the largest capital markets in the world. National Bank of Canada has been assigned a AAA credit rating by China Chengxin International Credit Rating Co. Ltd.

The PBoC says in a release, “The bond issuance by the National Bank of Canada is beneficial to further promoting cooperation in the financial area by Canada and China, and to deepening economic and trading relationships between the two countries. At the same time, this issuance will play a positive role in the opening up of China’s bond market.”

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.