A Panda bond is a Chinese renminbi-denominated bond from a non-Chinese issuer, sold in the People's Republic of China. The first two Panda bonds were issued in October 2005 on the same day by the International Finance Corporation and the Asian Development Bank. Their terms were 1.13 billion yuan of 10-year bonds at a 3.4% yield and 1 billion yuan of 10-year bonds at a 3.34% yield. The Chinese government had been negotiating for several years about implementation details before permitting the sale of such bonds; they had been concerned about the possible effects on their currency peg. Eventually, it was agreed that funds raised from sales of Panda bonds would have to remain in China; issuers would not be permitted to repatriate such funds.
In May 2010, rules were liberalised and more issuers were allowed, with the restriction on proceeds not being remitted abroad lifted.
- Zhang, Jinghong (2005-09-29). "熊猫债券发行 人民币区域化迈出重要一步 (Issuance of Panda bonds an important stride towards the regionalisation of the renminbi)". Xinhua News Agency. Retrieved 2007-07-06.
- Areddy, James T. (2005-10-11). "Chinese Markets Take New Step With Panda Bond". The Wall Street Journal. Retrieved 2007-07-06.
- "ADB, IFC mark inaugural Panda bond issue". People's Daily. 2005-10-19. Retrieved 2007-07-06.
- "`Panda' Bond Sellers Authorized to Send Money Home by China Government". Bloomberg. 2010-09-30. Retrieved 2011-09-29.
- Panda bonds Washington Post
- IFC Panda Bond Launch Opens Renminbi Market to International Institutions -- Bond Supports Capital Market Development, Local Currency Financing for Three Companies October 10, 2005