BNP Paribas China Limited announced that it has received the Panda Corporate Bond Lead Underwriting Licence Type B from China’s National Association of Financial Market Institutional Investors.
The licence allows BNP Paribas China to act as a lead underwriter on renminbi-denominated bonds, also known as Panda Bonds, issued by foreign corporate issuers.
CG Lai, BNP Paribas China’s Deputy Chief Executive Officer, said: "The licence is significant as China continues to promote its domestic bond market. With the growing maturity of multi-national corporations’ operations onshore in China, foreign parent companies are increasingly seeking to tap the domestic bond market as an important and highly cost-effective source of RMB funding to support their Chinese expansion needs."
"With this licence, BNP Paribas China can also help international issuers to tap the world’s largest RMB liquidity market for their offshore projects, which is key to promoting the RMB’s internationalisation," said Mr Lai.
BNP Paribas is only the third international bank to receive such a licence. The bank was previously licenced to act as an advisor and syndicate member for corporate Panda Bonds, participating in issuances for a number of MNC clients as more foreign companies look to fund their onshore activities in China in RMB.
George Sun, Head of Global Markets for Greater China, said: "This senior underwriting licence will help us to attract more foreign issuer participation in China’s bond market. This will help widen the issuer pool beyond Chinese issuers, as well as increase inbound foreign investment. We see this as a significant step forward in China’s financial market liberalisation."
BNP Paribas’ presence in China dates back to 1860 when it opened its first office in Shanghai. Today, with nearly 500 staff based in China, BNP Paribas provides banking, financing and advisory services via its Corporate & Institutional Banking and international financial services.
Source: BNP Paribas