The Asian Development Bank (ADB) has achieved a significant milestone by successfully issuing its largest-ever Panda Bonds, raising a total of CNY8.3 billion (approximately $1.2 billion) through a 3-year bond issuance. The bonds, issued on March 17, 2025, come with a coupon rate of 1.81 percent and mark ADB’s most substantial Panda Bond issuance to date. This achievement highlights the growing demand for sustainable investment opportunities and reinforces ADB’s commitment to fostering development and reducing poverty across its member countries.
Panda Bonds, which are yuan-denominated bonds issued by foreign institutions in the Chinese market, are an essential part of ADB’s strategy to diversify its funding sources. The successful issuance reflects strong confidence from both domestic and international investors, who continue to see the bonds as a reliable and attractive investment option. With this issuance, ADB aims to tap into the growing pool of local currency capital in Asia and the Pacific, which will further support its development projects targeting both sovereign and private sector borrowers.
Mr. Tobias Hoschka, ADB’s Treasurer, expressed his satisfaction with the success of the Panda Bond issuance. He stated, “We are delighted with the successful issuance of our latest Panda Bonds. This achievement underscores the robust demand for high-quality, sustainable investment opportunities in the Chinese bond market. The proceeds from this issuance will be instrumental in advancing our mission to foster economic growth and reduce poverty in the region.”
The proceeds from this bond issuance will be used to fund a range of development projects aimed at promoting inclusive and sustainable growth in ADB’s member countries. These projects will focus on infrastructure development, poverty alleviation, and environmental sustainability, in line with ADB’s broader objectives of creating resilient economies in Asia and the Pacific.
ADB’s ongoing efforts to issue Panda Bonds are part of its wider strategy to expand its financial reach and secure diverse funding channels. By tapping into the Chinese bond market, ADB can access local currency capital that can be used for its projects, thereby reducing its dependency on foreign currency funds. This strategy also helps strengthen ADB’s partnerships with local institutions and contributes to the regional economic integration of Asia.
Founded in 1966, ADB is a multilateral development bank with 69 member countries, 49 of which are from the Asia-Pacific region. ADB works to solve the region’s complex challenges by providing financial support, expertise, and partnerships. Its efforts are focused on driving sustainable, inclusive, and resilient growth across the region, ensuring that no one is left behind in the development process.
As the largest issuer of Panda Bonds in 2025, ADB’s latest issuance demonstrates the growing importance of local currency capital markets in financing development projects. This achievement further cements ADB’s role as a leading player in fostering economic growth and sustainable development in Asia and the Pacific.