ePrime Northbound Primary Service Facilitates the Crossborder Subscription of BMW China Capital Panda Bonds
9 February 2023
ePrime Northbound Primary Service facilitated the crossborder subscription of RMB 3 billion BMW China Capital three-year panda bonds on February 8. International investors could complete their subscriptions seamlessly and digitally with onshore underwriters by placing orders, receiving allocations and generating confirmation tickets via the connectivity between ePrime and the Bond Issuance, Underwriting and Distribution system of CFETS (iDeal).
Issued in the form of Medium-Term Notes, this marked the first corporate panda bond issuance of 2023. Lead underwriter and lead bookrunner, Bank of China Limited, together with joint lead underwriter and joint bookrunner, CITIC Securities Company, managed the underwriting and bookbuilding process. Guaranteed by its group parent BMW AG, the new issuance was well received by onshore and offshore investors and eventually priced at a 3.69% coupon rate.
Hu Kun, General Manager of Bank of China’s Investment Banking Department, commented, “As a panda bond market pioneer and one of its most active issuers, BMW set another milestone in China’s debt capital market by launching this year’s debut issuance through BMW China Capital. Bank of China is also delighted to have assisted BMW Group in all their panda bond issuances starting from their first in 2019. The transaction was well received by offshore investors with the support of Bond Connect, thereby further enlarging BMW’s investor base and showcasing global investors’ rebounded confidence in the Chinese bond market. In the future, we hope to attract more global investors into the Chinese market by leveraging the service convenience and efficiency brought by ePrime.”
David Zhang, Head of Foreign Institutional Business, FICC, CITIC Securities, noted, “BMW is one of the earliest and most dedicated panda bond issuers in China’s debt capital market and their issuances have been well received by both Chinese and domestic investors. With the support of ePrime, we are very glad to see that international investors’ subscription into BMW’s primary market panda bond issuance was made more convenient and efficient.”
Tony Wang, General Manager of BCCL, commented, “This issuance fully shows that international investors can participate in the fast-paced onshore Chinese primary market as they can focus on making investment decisions without the burden of administrative paperwork via ePrime. As such, the unique opportunities panda bonds present to international investors can be further captured and accessed with ePrime’s support.
In collaboration with CFETS and launched in October 2020, ePrime is an electronic solution for the primary bond market that spans across issuers, underwriters and investors specialized in the China cross-border workflow. It has two components to cater for issuance and subscription applications: ePrime Issuance Service and ePrime Northbound Primary Service.
ePrime Northbound Primary Service allows international investors to participate in the Northbound subscription of CIBM new issuances with onshore underwriters through the connectivity between ePrime and iDeal. It supports the crossborder subscription of various types of bonds, such as CGBs, PFBs, green financial bonds, MTNs, CP/SCPs etc, with 49 international investors onboarded.
Please contact us at eprime@chinabondconnect.com / (852) 2327 0398 for enquiries.
Issued in the form of Medium-Term Notes, this marked the first corporate panda bond issuance of 2023. Lead underwriter and lead bookrunner, Bank of China Limited, together with joint lead underwriter and joint bookrunner, CITIC Securities Company, managed the underwriting and bookbuilding process. Guaranteed by its group parent BMW AG, the new issuance was well received by onshore and offshore investors and eventually priced at a 3.69% coupon rate.
Hu Kun, General Manager of Bank of China’s Investment Banking Department, commented, “As a panda bond market pioneer and one of its most active issuers, BMW set another milestone in China’s debt capital market by launching this year’s debut issuance through BMW China Capital. Bank of China is also delighted to have assisted BMW Group in all their panda bond issuances starting from their first in 2019. The transaction was well received by offshore investors with the support of Bond Connect, thereby further enlarging BMW’s investor base and showcasing global investors’ rebounded confidence in the Chinese bond market. In the future, we hope to attract more global investors into the Chinese market by leveraging the service convenience and efficiency brought by ePrime.”
David Zhang, Head of Foreign Institutional Business, FICC, CITIC Securities, noted, “BMW is one of the earliest and most dedicated panda bond issuers in China’s debt capital market and their issuances have been well received by both Chinese and domestic investors. With the support of ePrime, we are very glad to see that international investors’ subscription into BMW’s primary market panda bond issuance was made more convenient and efficient.”
Tony Wang, General Manager of BCCL, commented, “This issuance fully shows that international investors can participate in the fast-paced onshore Chinese primary market as they can focus on making investment decisions without the burden of administrative paperwork via ePrime. As such, the unique opportunities panda bonds present to international investors can be further captured and accessed with ePrime’s support.
In collaboration with CFETS and launched in October 2020, ePrime is an electronic solution for the primary bond market that spans across issuers, underwriters and investors specialized in the China cross-border workflow. It has two components to cater for issuance and subscription applications: ePrime Issuance Service and ePrime Northbound Primary Service.
ePrime Northbound Primary Service allows international investors to participate in the Northbound subscription of CIBM new issuances with onshore underwriters through the connectivity between ePrime and iDeal. It supports the crossborder subscription of various types of bonds, such as CGBs, PFBs, green financial bonds, MTNs, CP/SCPs etc, with 49 international investors onboarded.
Please contact us at eprime@chinabondconnect.com / (852) 2327 0398 for enquiries.
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This document does not constitute a prospectus, an offer or an invitation to subscribe any securities or bonds, or a recommendation in relation to any securities or bonds. Investors should note investment involves risk and past performance is not indicative of future results. Investors should refer to the offering circulars of the bonds for further details including risk factors, in particular those associated with investment in emerging markets.
This document does not constitute a prospectus, an offer or an invitation to subscribe any securities or bonds, or a recommendation in relation to any securities or bonds. Investors should note investment involves risk and past performance is not indicative of future results. Investors should refer to the offering circulars of the bonds for further details including risk factors, in particular those associated with investment in emerging markets.