Deutsche Bank successfully issues record-breaking 5.5 billion renminbi Panda Bond

Deutsche Bank  announced the successful pricing and issuance of a 5.5 billion renminbi (RMB) multi-tranche Panda bond in the China Interbank Bond Market.

The transaction represents the first Panda bond issuance in 2026 by a EU financial institution, marking the largest single issuance by a foreign bank on record. It also signals Deutsche Bank’s return to the market as a regular issuer following its successful inaugural issue in 2023.

Strong demand highlighting investor confidence

Against a more volatile global market backdrop, the onshore RMB market provided relatively stable issuance conditions. The transaction attracted RMB 8.66 billion in total orders, with the 3-year and 5-year tranches oversubscribed by1.55x and 1.63x respectively.

The investor base included commercial banks, asset managers, and overseas institutional investors, demonstrating continued investor confidence in the bank’s credit profile as well as growing global interest in RMB-denominated assets. The final coupon rates were 1.95% for the 3-year tranche and 2.13% for the 5-year tranche.

A strategic step in global funding and capital management

Fiona Ip, APAC Treasurer of Deutsche Bank, said: “We are pleased to return to the Panda bond market with this record-breaking issuance. The transaction represents a strategic step in diversifying our global funding sources and accessing deep pools of onshore RMB liquidity. The strong investor demand underscores the growing sophistication of China’s onshore bond market, which is an important component of our global funding and capital management strategy as we continue to optimize our international liability structure.”

Rose Zhu, Deutsche Bank China Chief Country Officer, added: “This significant issuance reflects strong investor confidence in the bank’s credit strength and long-term strategy, while also highlighting the growing attractiveness of the RMB bond market to a diversified investors base."

As a bridge between China and global markets, we remain committed to injecting fresh momentum into Sino-European and Sino-German economic cooperation, leveraging our global network to help clients benefit from the continued opening of China’s financial sector. Rose Zhu

As a global systemically important bank (G-SIB) and the first German financial institution to issue Panda bonds, Deutsche Bank has been an active participant in China’s bond market for many years, serving as both an issuer and an underwriter. Leveraging its global network and capital markets expertise, the bank remains committed to providing global clients with diversified access to the RMB bond market and enhancing cross-border financial connectivity.