South Korea names Dec 15 date for sovereign “Panda” bond issue
(Reuters) South Korea has set December 15 as the date it will issue 3 billion yuan ($467.45 million) worth of yuan-denominated bonds in the Shanghai-based Chinese interbank market, South Korea said on Wednesday.
In doing so South Korea will become the first foreign country to issue sovereign "Panda" bonds in China.
"Panda" bonds are debt securities issued in China in the yuan currency by non-residents. The deal was confirmed without issuance details on Tuesday.
A book-building of the three-year "Panda" bonds will be conducted on Dec. 15, payment will be made on Dec. 16 and the bonds will be listed on the Chinese interbank market on Dec. 17, South Korea said in a statement published by the Shanghai Clearing House, China’s main bond clearer.
The bonds will be issued at par value with a fixed interest rate, which will be decided by the issuer and underwriters on the basis of the book building, it said.
Net proceeds will be included in South Korea’s market stabilising fund and will be mainly used for operations in China’s capital markets.
If needed the proceeds of the issue can be transferred to South Korea to supply liquidity for the yuan market there, it said.
The issue will be jointly underwritten by China’s Bank of Communications , Citibank, Goldman Sachs, HSBC and Standard Chartered , it said. (SHANGHAI, Dec 9/2015)