DBS obtains licence to underwrite non-financial corporate bonds in China

DBS China has acquired a licence to underwrite debt financing devices for non-financial enterprises, together with overseas issuers, on China’s interbank bond market.

The lender mentioned it’s the first South-east Asia headquartered financial institution to safe such a licence, which was awarded by China’s National Association of Financial Market Institutional Investors.

It will allow non-financial enterprises outdoors of China to faucet the world’s second-largest bond market, by leveraging DBS’ “track record in helping foreign governments and agencies, supranational organisations, and financial institutions”, mentioned the group on Wednesday (Feb 14).

Noting that overseas issuers are more and more turning to China’s bond markets for financing, the group additionally highlighted DBS China as “the most active foreign bank for panda bonds in the China interbank bond market” since 2021.

Panda bonds seek advice from yuan-denominated debt issued in China’s onshore market by non-Chinese firms, governments and organisations.

DBS China’s chief govt Ginger Cheng mentioned: “The development of panda bond issuances highlights the home bond market’s depth and rising worldwide standing, pushed partially by the federal government’s initiatives to internationalise its monetary markets.

“As one of the first foreign banks to participate in the China interbank bond market, our new underwriting licence expands DBS’ existing capabilities and networks in helping both foreign and local issuers access this attractive market.”

Source: www.businesstimes.com.sg”