UBS (UBS) raised 2 billion yuan ($297.5 million) through its debut panda bond in China's onshore market, highlighting growing demand among international issuers for lower borrowing costs, Bloomberg reported Friday.
According to the report, the five-year note was priced at a 1.78% coupon, setting a record low rate and narrowest spread over China's onshore benchmark for a bond of its kind issued by a foreign financial institution.
Panda bond issuance hit a record 214 billion yuan this year, up 67%, as global issuers seek cheaper and diversified funding in China, Bloomberg added.
UBS didn't immediately respond to MT Newswires' requests for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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