Panda Bond Issuance Surges to 183.1B Yuan in 2025 Amid Cheap Rates

In 2025, panda bond issuance reached 183.1 billion yuan, showing an increase of 80.4% year-over-year. Deutsche Bank raised 3.5 billion yuan (approximately $518 million) through a heavily subscribed bond offering. This surge in issuance allows foreign borrowers to access funding at considerably lower rates, with estimated coupons below 3% compared to 4.5% to 5.5% in dollar markets. The appeal of cheap borrowing costs in China, amidst a significant gap between Chinese and Western interest rates, attracts various international issuers, transforming the yuan into a popular funding currency.