NDB holds seminar to discuss ways to improve panda bond issuance

On July 12, 2024, the New Development Bank (NDB) held a panda bond seminar at the Shanghai Clearing House, titled “Promoting High-Level Opening Up in Financial Markets and Advancing the Development of Shanghai as an International Financial Center”. More than 100 representatives from regulatory agencies, self-regulatory organizations, financial infrastructure entities, issuers, underwriters and investors discussed the current situation and future trends of the panda bond market.

NDB has been actively involved in the Chinese interbank bond market since 2016, issuing a total of RMB 47.5 billion in Panda Bonds with an outstanding balance of RMB 31.5 billion, making it the largest issuer in the Panda Bond market. NDB Panda Bonds essentially function as Policy Bank bonds. They serve as a way for NDB to raise funds in the Chinese market to finance infrastructure and sustainable development projects in its member countries, modeled after supranational bonds issued by global entities.

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The seminar was attended by, among others, Monale Ratsoma, newly appointed Vice President and Chief Financial Officer of NDB; Jin Zhongxia, Director General of Treasury and Investment Department of NDB; Zhang Bo, Deputy Director of World Bank Loan Project Appraisal Center of Ministry of Finance; Ma Jianyang, President of Shanghai Clearing House.

“NDB will continue to enhance its access to capital markets and diversify its currency mix by exploring local currency lending opportunities. The China Interbank Bond Market is crucial to NDB’s funding operations,” said Monale Ratsoma. She highlighted the Bank’s Overall Strategy for 2022-2026, which aims to provide US$30 billion over five years to member countries, with a significant focus on climate change, non-sovereign operations, local currency funding and co-financing with other multilateral development banks.

NDB Panda Bonds function essentially as Policy Bank bonds.

The NDB is actively working to build an international cooperation platform, promote diversified investment and financing, and advance high-level financial opening-up. This Seminar is an important step forward in that direction.

Jin Zhongxia expressed NDB’s desire to remain the largest issuer in the Panda Bond market and an important international player in related financial markets. He stressed NDB’s intention to work with all parties to gradually increase the volume and frequency of issuance, expand and consolidate the domestic and international investor base, improve secondary market liquidity and smooth out the yield curve. He also highlighted NDB’s strong financial position and its goal of becoming a benchmark for other international issuers, given its ample capital, international preferred creditor status, high asset quality, sound risk management, sufficient liquidity and targeted support from member governments.