# Panda bonds

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Language: en

Published: 2026-10-25T17:45:39.925Z

Updated: 2026-10-25T17:45:39.925Z

A Panda bond is a Chinese renminbi-denominated bond from a non-Chinese issuer, sold in the People's Republic of China. Unlike the dim sum bond, Panda bonds are issued in the onshore market for onshore renminbi.

## Key facts

## Overview

A Panda bond is a Chinese renminbi-denominated bond from a non-Chinese issuer, sold in the People's Republic of China. Unlike the dim sum bond, Panda bonds are issued in the onshore market for onshore renminbi.

## History

The first two Panda bonds were issued in October 2005 on the same day by the International Finance Corporation and the Asian Development Bank. Their terms were 1.13 billion yuan of 10-year bonds at a 3.4% yield and 1 billion yuan of 10-year bonds at a 3.34% yield. The Chinese government had been negotiating for several years about implementation details before permitting the sale of such bonds; they had been concerned about the possible effects on their currency peg. Eventually, it was agreed that funds raised from sales of Panda bonds would have to remain in China; issuers would not be permitted to repatriate such funds.  In May 2010, rules were liberalised and more issuers were allowed, with the restriction on proceeds not being remitted abroad lifted. In June 2016, Bank of China has signed a Memorandum of Understanding on panda bonds issuance with Poland's Ministry of Finance, making Poland the first European sovereign government to issue such bonds. In March 2018, the Philippines issued its inaugural Panda bonds, thereby becoming the first Association of Southeast Asian Nations member to do so. The Bureau of the Treasury stated that regulatory approvals are the only remaining hurdle  for the issuance of three-year and five-year panda bonds. In July 2026, Indonesia announced plans to issue its first panda bonds, targeting 7 billion yuan (approximately US$1 billion) through three- and five-year tranches. The sale was scheduled for 23 July, with the Bank of China acting as lead underwriter and lead bookrunner.

## See also

Economy of China Chinese financial system Banking in China List of foreign currency bonds

## External links

Panda bonds Washington Post IFC Panda Bond Launch Opens Renminbi Market to International Institutions -- Bond Supports Capital Market Development, Local Currency Financing for Three Companies October 10, 2005 Panda Bonds explained: understanding China’s growing bond market

## Sources

- Panda bonds · Wikipedia: https://en.wikipedia.org/?curid=12110386

Source: Wikipedia contributors — https://en.wikipedia.org/?curid=12110386&oldid=1380712763

Licence: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/

Adaptation notice: Reformatted for XPay; the source may be abridged, restructured or translated. Consult the cited revision for the original.