CIMB Enters Panda Bond Market with $1.76 Billion Issuance

Malaysia’s CIMB Bank Berhad on Friday has made its debut of $1.76 billion three-year panda bond issuance in the China Interbank Bond Market, making it the largest single-tranche issuance by a Malaysian institution to date.

The bank said that the bond carries a fixed coupon rate of 2.18% with a robust order book of $650 million, and saw a notable deepening of CIMB’s investor base, attracting a broad base of onshore and offshore institutional investors.

The issuance also represents the second largest panda bond issuance by an Asean issuer, and achieved the lowest coupon rate on record ever secured by an Asean issuer, the Malaysian bank said.

The bond has been assigned an AAA rating by China Chengxin Credit Rating Group. The net proceeds from the issuance will primarily be used to expand CIMB’s local and cross-border businesses to bolster regional trade and finance in strategic sectors.

The bank said that a portion of the proceeds will be retained onshore to reinforce CIMB’s business development in China, underscoring its commitment to the Chinese market.

Strong Investor Demand

CIMB Group CEO Novan Amirudin said the strong demand from investors for the bank’s panda bond issuance reflected the confidence in CIMB’s diversified ASEAN franchise and financial strength.

He said that in line with the bank’s Forward30 roadmap, this bond issuance reaffirmed their commitment to reallocate resources for infrastructure and sustainable development projects that deliver long-term value and sustainable growth across China, Malaysia, and the wider ASEAN region.

“This significant milestone reinforces CIMB’s role as a bridge between China and ASEAN, adding momentum to our efforts to accelerate financial integration and promote cross-border investment and trade,” Amiruddin added.

CIMB Bank collaborated with a consortium of 11 Chinese, regional and international financial institutions to complete the panda bond issuance successfully.