Norton Rose Fulbright advises on Deutsche Bank's issuance of two Panda bonds with an aggregate volume of RMB 3.5 billion

Global law firm Norton Rose Fulbright has advised Deutsche Bank Aktiengesellschaft on the successful issuance of two Panda bonds with an aggregate volume of RMB 3.5 billion. Panda bonds are renminbi-denominated bonds issued by an issuer having its registered seat outside of the People's Republic of China (PRC) and sold mainly to investors in the PRC. The transaction enables Deutsche Bank to directly tap into the PRC's large onshore bond market.

The senior preferred bonds were underwritten by a syndicate of banks consisting of Deutsche Bank (China) Co., Ltd. as Lead Underwriter and Lead Bookrunner and Industrial and Commercial Bank of China Limited, Bank of China Limited, China Construction Bank Corporation, The Export-Import Bank of China, Postal Savings Bank of China Co., Ltd., Industrial Bank Co., Ltd, China CITIC Bank Corporation Limited, Ping An Bank Co., Ltd., China Merchants Bank Co., Ltd., DBS Bank (China) Limited, Sumitomo Mitsui Banking Corporation (China) Limited, OCBC Bank Limited, Fubon Bank (China) Co., Ltd, CITIC Securities Company Limited, China Galaxy Securities Co., Ltd. and Zhong De Securities Company Limited as Joint Lead Underwriters and Joint Bookrunners.

The Panda bonds will mature in June 2029 and June 2031 and bear a fixed interest rate of 1.72 per cent. and 1.94 per cent., respectively.

The issuance garnered a strong market reception, attracting a diverse pool of domestic and international investors. Accordingly, both Panda bonds were significantly oversusbscribed, with the three-year tranche achieving a 1.95x subscription rate and the five-year tranche a 2.59x subscription rate..

With this transaction, the Norton Rose Fulbright team led by partner Christoph Enderstein (Debt Capital Markets, Frankfurt) builds on recent advice to Deutsche Bank in connection with the successful issuance of a European Green Bond and a Tier 2 bond.

Christoph Enderstein, who also heads the Debt Capital Markets practice of Norton Rose Fulbright in Germany, commented:

"The issuance of the Panda Bonds provides Deutsche Bank with direct access to the Chinese onshore bond market. At the same time, it strengthens the bank's presence in one of the world's most important capital markets and diversifies its refinancing sources. The transaction also underscores the growing interest of international issuers in Renminbi-denominated financing instruments. We are delighted to have once again advised the bank on this strategically significant transaction."

The Norton Rose Fulbright team also included counsel Dr Michael Born (Debt Capital Markets/Banking Regulatory, Frankfurt), senior associate Florian Fraunhofer and associate Quynh-Anh Nguyen-Walter (both Debt Capital Markets, Frankfurt), partner Dr Simon Weppner and senior associate Sarah Heufelder (both Tax Law, Düsseldorf/Munich).

Norton Rose Fulbright's Debt Capital Markets team in Frankfurt led by partner Christoph Enderstein advises both investment banks and issuers in connection with national and international capital markets transactions in the areas of debt capital markets and structured finance, in particular on bonds, electronic securities, covered bonds (Pfandbriefe), structured bonds, securitized derivatives, hybrid instruments, commercial paper, registered bonds, Schuldschein loans and debt issuance programmes as well as the related regulatory aspects including sustainable finance matters.