UOB issues RMB 5 billion 3-year Panda bond at one of the lowest coupon for an international issuer
SINGAPORE, March 19, 2026 /PRNewswire/ — UOB has successfully priced an RMB 5.0 billion three-year bond at 1.83 per cent.
UOB was the first Singaporean issuer and only Singaporean bank in the Panda bond market. This is the Bank’s third Panda bond since its debut in 2019 and the sixth Chinese interbank bond offering by the Group, including issuances from UOB China, demonstrating the Group’s long-standing commitment to the capital markets in China. Our Panda bond offering in 2024 was the first time a bank listed a Panda bond on the Singapore Exchange (SGX). Similar to 2024, UOB will also apply for this bond to be listed on SGX subject to regulatory approval.
This offering garnered strong demand with a subscription ratio of 1.6x times from both onshore and offshore investors – 22 per cent of participation from offshore investors, with onshore investors taking 78 per cent.
This is the joint largest issue size for a three-year tenor among foreign bank issuers, equal to that attained by UOB in 2024. The size achieved is 1bn to 3bn larger than the equivalent 3Y tranches by other foreign bank peers earlier this year.
The final coupon of 1.83 per cent represents a spread of 22 basis points over the three-year China Development Bank benchmark bond yield. The coupon and spread achieved is one of the lowest achieved by an international foreign bank (excl HK) Panda bond issuer to date.
With USD markets largely closed due to geopolitical volatility, the onshore RMB market has remained stable, with onshore issuances remaining normal and yields remaining compressed.
Ms Koh Chin Chin, Head of Group Treasury, Research and Customer Advocacy, UOB, said, “We’re pleased to complete our CNY5 billion Panda bond issuance with strong investor support. As a repeat issuer, we appreciate the depth and resilience of the onshore RMB market, which has remained stable despite a challenging geopolitical backdrop. We remain committed to deepening our long–standing engagement with China’s RMB investor community and supporting the continued growth of the Panda bond market.”
Transaction highlights
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The trade was marketed with a range of 1.70 to 2.10 per cent saw strong momentum with orderbooks reaching almost 6bn within 3 hours and marginal rate decreasing from to 2.10 per cent to 1.84 per cent by 5pm. There was a 1.1x cover ratio at the final coupon of 1.83%.
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Final orderbooks reached RMB 8.2 billion with a cover ratio at 1.6x
Distribution
Geography:
Investor type:
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Banks – 95%
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Securities firms – 5%
