The Asian Development Bank (ADB) has successfully issued its largest Panda Bonds yet, raising CNY 8.3 billion (around $1.15 billion). This three-year bond issuance, launched on March 17, 2025, offers a coupon rate of 1.81%.
This significant milestone highlights ADB’s largest-ever Panda Bonds issue, making it a major achievement in 2025. These bonds are the biggest local currency bonds ever issued by the ADB, attracting strong interest from both domestic and international investors. The demand reflects confidence in ADB’s ongoing commitment to sustainable development across Asia.
What are Panda Bonds?
Panda Bonds are bonds issued in China’s domestic market, in Chinese yuan (CNY), by non-Chinese entities. They are an important tool for raising capital from Chinese investors and supporting development projects in the region.
ADB’s Role in Development
According to Tobias Hoschka, ADB’s Treasurer, the successful issuance of these Panda Bonds shows the high demand for quality, sustainable investment opportunities in China’s bond market. The funds raised from this issuance will be used for ADB’s development projects, which aim to stimulate economic growth and reduce poverty within its member countries.
“The proceeds will help us continue to promote inclusive and sustainable development, supporting both sovereign and private sector borrowers,” Hoschka explained.
ADB’s Efforts to Diversify Funding
The Panda Bonds are part of ADB’s broader strategy to diversify its funding sources and tap into the growing local currency capital in Asia and the Pacific. The funds from these bonds will help finance projects that encourage inclusive development and long-term sustainability.
About ADB
Founded in 1966, the Asian Development Bank is a multilateral development bank that supports sustainable, inclusive, and resilient growth across Asia and the Pacific. ADB works with its members and partners to tackle complex challenges, using innovative financial tools and strategic collaborations to improve lives, build infrastructure, and protect the environment. ADB is owned by 69 members, including 49 from the region.
