On September 23, 2016, the National Bank of Canada received approval from the People’s Bank of China to issue up to RMB 5 billion Renminbi-denominated bonds, and the first tranche of RMB 3.5 billion of bonds with a three-year term launched successfully on November 2, 2016.
The successful issuance of the National Bank of Canada’s Panda Bond is epically significant. This is not only the first non-sovereign foreign institution (the issuers of the first two Panda Bond programs were both Hong Kong non-sovereign institutions) but also the first North American financial institution to issue Panda Bond in Mainland China. National Bank of Canada becomes the first non-governmental institution in North America to access the Mainland China Panda Bond market. This is also the largest Panda Bond offering to date by a foreign financial institution.
Acting as the PRC counsel for the National Bank of Canada for this bond offering, JunHe advised on Chinese legal issues involved in the offering, reviewed and revised all of the transaction documents, submissions and offering circular, and issued its legal opinion.
Partner YU, Yongqiang (YY) led the JunHe team for this project.