UBS Group has completed its first Panda bond in China’s Interbank Bond Market, raising CNY 2 billion, roughly $275 million or NT$8.1 billion, through a five-year bond with a 1.78% coupon. The rate was the lowest on record for a five-year Panda bond issued by an international financial institution and the tightest spread against the China Development Bank benchmark. Orders exceeded the amount available by more than three times, highlighting strong demand from onshore investors. The deal was jointly led by UBS Securities Co. Ltd. and Industrial and Commercial Bank of China. UBS Group CEO Sergio P. Ermotti described the issuance as a sign of investor confidence in UBS’s broader China strategy. Annual Panda bond issuance had surpassed CNY 200 billion by late August 2026, reflecting the market’s growing importance as foreign institutions seek relatively inexpensive yuan funding.