First panda bond trader Trafigura

- Trafigura is the first large commodity trader to issue bonds on the Chinese debt market, on the mainland and not as usual in Hong Kong.

The Singapore-based large trading group, with $ 136.4 billion annual sales in oil and metals and a Dutch domicile, issued a so-called 'panda' bond in renminbi with a three-year maturity for the mainland.

These bonds differ from the older so-called Dim Sum bonds, which are not traded on the Chinese mainland. Panda bonds are covered by Beijing's financial supervision.

At Trafigura, it is for the time being a small bond from the commodity trader, around $ 75 million. It is the first installment in a series of Trafigura debt paper to be issued.

This company shifted more and more of its trade towards Asia, but the entrance to this bond market was not forthcoming.

'We plan to return as a bond issuer,' the company said. This mainly reflects the growing importance of the Chinese renminbi currency in global trade.

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