Trafigura Group, a market leader in the global commodities industry, has successfully issued a 1,500 million renminbi-denominated bond with a tenor of three years, in China’s domestic debt market.
This marks the successful return to the Panda Bond market for Trafigura after a three year period. The significant size of the financing demonstrated the strong appetite from Chinese and international RMB investors, including commercial banks, asset managers and securities firms.
“Since 2018 Trafigura has been a regular international issuer in the Panda Bond market which offers competitive pricing for long term capital and adds to the diversification of Trafigura’s sources of funding,” said Claire Chen, Trafigura China’s Chief Financial Officer.
The total size of the Company’s new Panda Bond programme placed in the Interbank Market has been registered with the National Association of Financial Market Institutional Investors (NAFMII) for RMB5,000 million, allowing regular tranches to be issued under the programme. Approval has been received from the People’s Bank of China for the bond’s proceeds to be repatriated offshore where the funds will be used for general corporate purposes.
Thirteen investors took part in the Panda Bond, with Bank of China Limited acting as Lead Bookrunner, with Bank of Communications Co., Ltd; China Merchants Bank Co., Ltd and Postal Savings Bank of China Co., Ltd as Joint Lead Bookrunners.