Panda bond

A Panda bond is a Chinese renminbi-denominated bond from a non-Chinese issuer, sold in the People's Republic of China.cite web|url=http://news.xinhuanet.com/stock/2005-09/29/content_3560097.htm|date=2005-09-29|accessdate=2007-07-06|last=Zhang|first=Jinghong|title=熊猫债券发行 人民币区域化迈出重要一步 (Issuance of Panda bonds an important stride towards the regionalisation of the renminbi)|publisher=Xinhua News Agency] 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. cite news|publisher=The Wall Street Journal|title=Chinese Markets Take New Step With Panda Bond|last=Areddy|first=James T.|date=2005-10-11|accessdate=2007-07-06|url=http://online.wsj.com/article/SB112893305062664267.html?mod=article-outset-box] ref>cite news|url=http://english.people.com.cn/200510/19/eng20051019_215152.html|date=2005-10-19|title=ADB, IFC mark inaugural Panda bond issue|publisher=People's Daily|accessdate=2007-07-06] 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.

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