French bank Credit Agricole to set up China 'Panda' bond issue program

FILE STORY: A logo of Credit Agricole is seen outside a bank office in Bordeaux, France, July 30, 2019. REUTERS/Regis Duvignau

PARIS (Reuters) - French bank Credit Agricole CAGR.PA said it was setting up a so-called "Panda" bond issuance program in order to gain access to the onshore Chinese interbank bond market.

A Panda bond is issued in the onshore Chinese interbank bond market by a foreign issuer, and is denominated in Chinese yuan.

Credit Agricole’s Panda bond issuance program has been set with a program cap of up to 5 billion Chinese yuan ($714 million), and the proceeds will help the company fund its Chinese subsidiary based in Shanghai.

Reporting by Sudip Kar-Gupta