Asian Development Bank to price RMB 1 billion 10-year Panda bonds

By Susanna Moon

Chicago, Dec. 1 - Asian Development Bank said it will issue its second renminbi-denominated "Panda" bonds in the domestic capital market of the People's Republic of China.

The issue will have a bullet maturity of 10 years and a fixed coupon rate payable annually.

ADB said that it and lead manager China International Capital Corp. Ltd. have conducted roadshows in Shanghai and Beijing.

Book building will be done on Dec. 4, and pricing will take place by the close of business that day, according to an ADB press release.

Proceeds will be used to fund private sector clean energy and energy efficiency projects. The objective is to help reduce currency risk and provide long-term RMB financing for private enterprises, ADB said.

The bank will execute interest rate swaps as with the first bond issue in China.

"ADB is privileged to continue to contribute to the further development of the bond and derivatives markets in China," Bindu Lohani, ADB's vice president of finance and administration, said in the release.

"Additionally, ADB will be able to provide long-term local-currency financing to private sector and non-sovereign borrowers in the PRC through this bond issuance," Lohani said.

The financial institution promotes economic and social progress in the Asia-Pacific region and is based in Manila, Philippines.

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