DBS Group has become the first Southeast Asian-headquartered bank to receive regulatory approval from China's National Association of Financial Market Institutional Investors to underwrite debt financing instruments for non-financial companies in the China Interbank Bond market. This approval allows non-financial enterprises outside China to leverage DBS's expertise to raise funds in the world's second-largest bond market.
DBS has already made strides in the Panda bond market, being the joint lead underwriter for SGD 3.1 billion (US$2.3 billion) worth of Panda bonds in 2023, constituting over 10% of the total SGD 26.2 billion Panda bonds issued during the year. Panda bonds refer to yuan-denominated debt issued in China's onshore market by non-Chinese entities, including companies, governments, and organizations.
Clifford Lee, DBS's Global Head of Fixed Income, highlighted the bank's track record in supporting multilateral development banks, foreign governments, and European financial institutions in issuing Panda bonds, including inaugural issuances. This regulatory approval further solidifies DBS's position in facilitating cross-border financing and expanding its footprint in China's dynamic bond market.