Deutsche Bank today announced that it has received approval from the National Association of Financial Market Institutional Investors (NAFMII) to underwrite corporate bonds in China’s Inter-bank Bond Market (CIBM).
Frankfurt am Main, Germany/Hong Kong, Beijing, China 13-Jul-2018 — /EuropaWire/ — The approval enables the bank to underwrite debt financing instruments for both onshore and offshore issuers. The bank is already licensed in China as a market maker on CIBM and China Bond Connect, and as a bond settlement agent.
“We are very pleased to have been granted this bond underwriting license, which cements our status as one of only a select handful of full-service foreign banks in China,” said Werner Steinmueller, Deutsche Bank Asia Pacific CEO. “The ability to help offshore and onshore clients issue primary debt in China provides an important additional facet to our full suite of capabilities in the world’s third largest fixed income market. We remain committed to our pioneering platform in China, and intend to keep building on our offering for clients in this critical market.”
According to financial information service provider Wind, as of the end of June 2018, CIBM reached a combined size of over CNY 78.7trn (EUR 11trn), with a net new issuance volume of RMB 4.1 trillion (EUR 525bn) in the first six months of this year of which 10% went to foreign investors. Deutsche Bank expects RMB bond investment flows to reach CNY 4.6 – 5.3 trillion (EUR 600-680 billion) over the next five years, including CNY 700bn (EUR 90bn) in 2018.
The so-called Panda bond market is becoming increasingly important for international corporate clients looking to tap the onshore market for funding their domestic business. The People’s Bank of China published new cross-border financing rules last year which make it easier to use funds raised via Panda bonds for financing onshore operations, while also allowing proceeds to be remitted outside the country.
As one of the world’s leading Fixed Income and Currencies players, Deutsche Bank has played a significant role in the continued opening-up of China’s capital markets, and is committed to contributing to the market’s continued development. As of end of May 2017, Deutsche Bank was among the top three foreign settlement agents in CIBM by both number of clients and total client depository balance*.
*NAFMII data, end of May 2017.
Media contacts Deutsche Bank AG:
Tel: +86 10 5969 8617
Tel: +852 2203 8434
Tel: +49 (69) 910 42744
About Deutsche Bank
Deutsche Bank provides commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small and medium-sized businesses, and private individuals. Deutsche Bank is Germany’s leading bank, with a strong position in Europe and a significant presence in the Americas and Asia Pacific.
This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on the plans, estimates and projections currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which Deutsche Bank derives a substantial portion of its revenues and in which the bank holds a substantial portion of its assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of strategic initiatives of the bank, the reliability of the bank’s risk management policies, procedures and methods, and other risks referenced in the bank’s filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in the bank’s SEC Form 20-F of 16 March 2018 under the heading “Risk Factors”. Copies of this document are readily available upon request or can be downloaded from www.db.com/ir.
SOURCE: Deutsche Bank AG