Panda Bond

A Panda Bond is a Chinese Renminbi (RMB)-denominated bond issued by a non-Chinese entity in the People's Republic of China's domestic bond market, providing foreign issuers with direct access to China's vast onshore capital pool. These bonds, named after China's national animal, are a key instrument in the internationalization of the RMB and offer foreign corporations, financial institutions, and sovereign entities a mechanism to raise capital for their operations within China or to diversify their funding sources.