UBS issues first Panda bonds in China, sets record low interest rate

UBS has announced the successful issuance of its inaugural Panda bonds in China's interbank bond market (CIBM), raising 2 billion yuan.

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China is an important market for UBS and a key component of our growth strategy. This first Panda bond issuance further demonstrates our long-term commitment to the Chinese market.

The 5-year bonds were priced at a coupon rate of 1.78%. This rate sets a new record for the lowest coupon rate achieved by a foreign financial institution for a 5-year Panda bond. It also represents the narrowest interest rate spread compared to the benchmark set by the China Development Bank.

This issuance marks a significant milestone for UBS, being the first time the Swiss financial institution has issued Panda bonds in China. The strong market reception saw the bonds oversubscribed by more than three times, attracting a diverse range of high-quality investors. This reflects robust investor confidence in UBS's financial strength, risk management capabilities, and long-term growth strategy in China.

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This issuance is another important milestone in our continued participation in the process of opening up China's financial market, and fully reflects the deepening connectivity between China's domestic capital market and international issuers.

Sergio P. Ermotti, UBS Group CEO, emphasized China's importance as a key market and a crucial component of UBS's growth strategy. He stated that the first Panda bond issuance further demonstrates UBS's enduring commitment to the Chinese market. The strong investor demand validates the market's trust in the bank's stability and strategic direction.

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This issuance, completed at a record low coupon rate, fully reflects investors' high recognition of UBS's stable credit quality and financial strength.