BANK of Tokyo-Mitsubishi UFJ (BTMU), the banking subsidiary of Mitsubishi UFJ Financial Group, on January 12 priced a one-billion-yuan (US$155.76 million) Panda bond in the Chinese interbank bond market.

The three-year offering has a coupon of 5.3% and was sold via private placement to institutional investors in China. The bonds are rated AAA by Shanghai Brilliance Credit Rating & Investors Service Company.

BTMU made preparations to issue the bond following receipt of approval from the People’s Bank of China, looking at the prevailing interest rate environment.

The bank has been making an ongoing commitment to the development of renminbi bond markets. In May 2010, BTMU (China) was the first foreign bank to issue renminbi-denominated bonds in the Chinese onshore market. In May 2014, it became the first foreign bank to issue offshore Chinese renminbi bonds in Hong Kong and in June 2015 it was the first to issue offshore renminbi-denominated bonds, called Fujiyama bonds, in the Japanese market.

BTMU says the issuance of Panda bonds will lead to the establishment of a longer-term renminbi procurement route while stabilizing procurement by diversifying renminbi procurement methods. It adds it will continue developing procurement options that can withstand fluctuations in the market environment and will strive to provide high-quality, cutting-edge services that meet the needs of its clients.

BTMU (China), Bank of China, Industrial Commercial Bank of China, Export-Import Bank of the Republic of China, Shanghai Pudong Development Bank and Morgan Stanley acted as the lead managers for the transaction.