Deutsche Bank issues second Panda Bond in 2026, expanding access to China’s capital markets

29 May 2026: Deutsche Bank announced the issuance and pricing of a RMB 3.5 billion multi-tranche Panda bond in the China Interbank Bond Market (CIBM).

The issuance garnered a strong market reception, attracting a diverse pool of domestic and international investors. The offering, comprised of a CNY 2.5 billion three-year tranche and a CNY 1 billion five-year tranche, was priced with final coupon rates of 1.72% and 1.94% respectively. This represents pricing that is 21 basis points tighter than the bank's previous issuance in early March. The deal was significantly oversubscribed, with the three-year tranche achieving a 1.95x subscription rate and the five-year tranche a 2.59x rate.

The landmark pricing achieved several market records. Both tranches set the lowest coupon on record for a foreign Panda issuer (excluding quasi-sovereigns) in the respective tenor bucket. This robust demand underscores the market's sustained confidence in Deutsche Bank's credit profile and the growing global appetite for RMB-denominated assets.

This transaction is part of Deutsche Bank’s pre-approved issuance program and marks the bank’s second panda bond issuance this year. The issuance demonstrates Deutsche Bank’s strategy of diversifying funding sources and long-term commitment to the Chinese market.

As a leading European bank, Deutsche Bank continues to deepen its presence in the onshore RMB market, reinforcing its pivotal role as a bridge for economic and trade cooperation between China, Germany, and Europe, while actively supporting the internationalization of the RMB and the further opening of China's financial markets.

"This issuance is a powerful testament to our commitment to being the Global Hausbank for our clients in China. As a bridge connecting China with global markets, we are dedicated to injecting new momentum into Sino-German and Sino-European economic and trade cooperation." Rose Zhu, Deutsche Bank China Chief Country Officer.

"Deutsche Bank's active participation in the Panda bond market both as an issuer and a premier underwriter not only highlights our firm confidence in China's long-term development but also continuously deepens our onshore business capabilities. This enables us to provide leading solutions and services for our clients to seize opportunities arising from the ongoing opening of China's financial markets," Rose said.

Fiona Ip, Head of APAC Treasury at Deutsche Bank, commented: "In the current global interest rate environment, strategically diversifying funding channels is crucial. This issuance allows us to efficiently tap China’s deep and highly liquid onshore market. It reflects robust investor confidence in Deutsche Bank’s credit strength and establishes the renminbi as a key component of our global funding, supporting our sustainable growth."

As a strategic issuer, Deutsche Bank is not only an active participant in the RMB bond market but also a premier underwriter guiding other multinational corporations and financial institutions into China's bond market. Year-to-date in 2026 and for the past five years, Deutsche Bank has been the number one ranked foreign banks in the bond underwriting league both for overall bonds registered with the National Association of Financial Market Institutional Investors (NAFMII) as well as for Panda bonds by foreign issuers[1], demonstrating strong business momentum and a formidable presence in China's onshore debt capital markets.

[1] According to data by WIND.