Foreign borrowers to issue "panda" bonds

The Asian Development Bank and the International Finance Corporation are to become the first foreign borrowers to issue yuan-denominated bonds, also known as "Panda" bonds, the Chinese Ministry of Finance has announced. The ministry said this was part of a pilot programme to help expand the bond market, which it is hoped will take pressure off the country's banking system as a source of capital for companies. The IFC, the private sector arm of the World Bank, hopes to issue US$124 million in 10-year yuan bonds this year.