DBS China has received a licence to underwrite debt financing instruments for non-financial enterprises, including foreign issuers, on China’s interbank bond market.
The lender said it is the first South-east Asia headquartered bank to secure such a licence, which was awarded by China’s National Association of Financial Market Institutional Investors.
It will enable non-financial enterprises outside of China to tap the world’s second-largest bond market, by leveraging DBS’ “track record in helping foreign governments and agencies, supranational organisations, and financial institutions”, said the group on Wednesday (Feb 14).
Noting that foreign issuers are increasingly turning to China’s bond markets for financing, the group also highlighted DBS China as “the most active foreign bank for panda bonds in the China interbank bond market” since 2021.
Panda bonds refer to yuan-denominated debt issued in China’s onshore market by non-Chinese companies, governments and organisations.
DBS China’s chief executive Ginger Cheng said: “The growth of panda bond issuances highlights the domestic bond market’s depth and rising international standing, driven in part by the government’s initiatives to internationalise its financial markets.
“As one of the first foreign banks to participate in the China interbank bond market, our new underwriting licence expands DBS’ existing capabilities and networks in helping both foreign and local issuers access this attractive market.”
