In a recent transaction, Bank of China acted as the lead underwriter and lead bookrunner, successfully assisting Seaspan Corporation, the world's largest independent container ship owner, in its inaugural issuance of a 1.5 billion yuan three-year Panda bond with a coupon rate of 2.5%.
Seaspan Corporation, a Canada-headquartered company, is the world's largest independent container ship owner, primarily engaged in vessel leasing and fleet operations with a global route network. The successful completion of this bond issuance signifies that Bank of China has helped Seaspan establish an onshore renminbi financing channel, effectively facilitating a complete "borrow-use-repay" renminbi cycle for the company. This provides a replicable and referential practical model for global shipping enterprises seeking direct renminbi financing.
Pioneering Role in the Canadian Market
As the first Chinese bank to enter the Canadian market, Bank of China has been operating there for over thirty years. Its branch network covers four major city regions: Toronto, Vancouver, Calgary, and Montreal, making it the Chinese bank with the most extensive branch network and the most comprehensive range of services in Canada. Over the long term, Bank of China has consistently served Canadian issuers, achieving new breakthroughs in the Panda bond market and injecting strong momentum into bilateral financial cooperation between China and Canada.
Key Market Milestones Facilitated
The bank led the successful issuance of a 3 billion yuan Panda bond for the Province of British Columbia, Canada. This was the first Panda bond from a North American issuer, further broadening the renminbi financing channels for overseas sovereign issuers.
Acting as a lead underwriter, the bank assisted the National Bank of Canada in successfully issuing a 3.5 billion yuan Panda bond. This was the market's first Panda bond issued by a foreign financial institution, significantly contributing to the expansion and quality improvement of the Panda bond market.
Market Leadership in Panda Bonds
Panda bonds are renminbi-denominated bonds issued by overseas institutions within China. Since the beginning of 2024, the issuance of Panda bonds has seen a significant increase in activity, with 103 Panda bonds issued in the interbank market. Bank of China participated in underwriting nearly 70 of these, representing a 65% underwriting share. To date, Bank of China has been the top underwriter in the Panda bond market for twelve consecutive years, making it the preferred bank for overseas institutions entering this market.
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