ADB Breaks Record with Largest-Ever CNY8.3B Panda Bond for Sustainable Projects

With growing investor interest in ESG-compliant and green bonds, ADB plans to further expand its presence in local currency markets like the renminbi.

The Asian Development Bank (ADB) has achieved a historic milestone in the Chinese financial market with the successful issuance of its largest-ever Panda Bond — a CNY8.3 billion (approximately USD 1.15 billion), 3-year note carrying a 1.81% coupon. This bond issuance, finalized on 17 March 2025, marks ADB's most significant local currency offering to date and the largest Panda Bond issued by any multilateral development institution in 2025 so far.

Panda Bonds are renminbi-denominated bonds issued by non-Chinese entities in mainland China. ADB’s continued presence in this market reflects its long-term strategy to deepen engagement with local currency investors and broaden its funding base for sustainable development finance across Asia and the Pacific.

Strong Investor Demand Reflects Market Confidence

The bond was met with overwhelming interest from a broad base of investors, both domestic and international. Institutional investors, banks, asset managers, and central banks participated in the issuance, showcasing strong confidence in ADB’s triple-A credit rating and its commitment to responsible, sustainable investment initiatives.

“This is a landmark issuance for ADB, and we are delighted by the strong reception it received,” said Tobias Hoschka, ADB Treasurer. “The successful placement of this CNY8.3 billion bond is a testament to the appetite for high-quality, sustainable investment products in China’s bond market. It also demonstrates growing investor trust in our efforts to promote inclusive and environmentally conscious development in the region.”

Diversifying Funding Sources for Greater Development Impact

This Panda Bond forms a key part of ADB’s capital markets strategy to diversify its funding sources while aligning with its broader mission to support social and economic development. By tapping into the renminbi capital pool, ADB enhances its ability to offer local currency financing to its member countries, especially in projects that promote climate resilience, education, clean energy, infrastructure, and poverty reduction.

The proceeds from this issuance will be directed toward both sovereign and private sector projects that align with ADB’s development priorities, including the UN Sustainable Development Goals (SDGs). The projects are expected to focus on sustainable infrastructure, renewable energy, health, and education sectors.

ADB’s Commitment to Regional Integration and Sustainability

ADB has long been at the forefront of promoting sustainable growth in Asia and the Pacific. The bank has committed to aligning 100% of its operations with the goals of the Paris Agreement on climate change by July 2025. This latest bond offering is in line with that commitment, as it enables more localized and flexible financing tailored to the needs of developing member countries.

“This record-breaking issuance not only strengthens our access to China's deep capital markets but also reinforces our commitment to financing solutions that are impactful, inclusive, and sustainable,” Hoschka added.

Looking Ahead

With growing investor interest in ESG-compliant and green bonds, ADB plans to further expand its presence in local currency markets like the renminbi. The institution has signaled intentions to continue issuing thematic bonds — including gender, green, and blue bonds — to support targeted development outcomes and address the most pressing challenges faced by its member states.

This issuance builds on ADB’s long-term relationship with China’s capital markets and underscores the important role Panda Bonds can play in mobilizing capital for development. As financial markets in the region mature, ADB is expected to continue leading efforts to bridge investment gaps with innovative and sustainable financing instruments.