Credit Agricole S.A. set up a Panda Bond Issuance Programme to Secure CNY Funding
Crédit Agricole S.A. has successfully obtained regulatory approval on a Panda Bond Issuance Programme enabling an access to the onshore Chinese Interbank Bond Market. Crédit Agricole S.A. is the first European G-SIB Financial Institution to obtain such an approval from the People’s Bank of China.
A Panda Bond is issued in the onshore Chinese Interbank Bond Market by a foreign issuer, and denominated in Chinese yuan (CNY).
Crédit Agricole S.A.’s Panda Bond Issuance Programme has been set with a programme cap of up to CNY5bn (around €640m at current exchange rate), which can be issued partially or in totality in the next two years. Crédit Agricole S.A. intends to issue its inaugural benchmark Panda Bond soon, subject to market conditions, and become a repeat issuer in the fast-growing Panda market to fund its activities in China and further diversify its long term funding.
Crédit Agricole Group has a long-standing presence and commitment to China. Currently in 6 Chinese cities, the Crédit Agricole Group has been present in China for more than 120 years. Three business lines currently operate in China with:
· Crédit Agricole Corporate and Investment Bank – via its subsidiary Credit Agricole CIB (China) Ltd;
· Crédit Agricole Consumer Finance – via GAC-Sofinco, a joint-venture with Guangzhou Automobile Group;
· Amundi – via ABC-CA, a joint-venture with Agricultural Bank of China & China Aluminum Corporation.
The proceeds of this first Panda Bond issuance will be used to finance its wholly-owned banking subsidiary, Crédit Agricole CIB (China) Ltd., which has been growing its footprint in China to serve its international client base via financing and capital market transactions. Headquartered in Shanghai, Crédit Agricole CIB Chinese franchise has become a significant growth engine in Asia-Pacific for the Group.
The issuer, Crédit Agricole S.A., as the Central Body and as a Member of the Crédit Agricole Network, and its Panda Bonds have obtained a domestic rating of AAA from China Chengxin International Credit Rating.