Deutsche Bank AG said on Friday that it has successfully priced a 5.5 billion yuan ($796 million) multi-tranche panda bond in the China Interbank Bond Market, marking the first panda bond issuance by a European Union financial institution in 2026 and the largest single issuance by a foreign bank.

Amid heightened volatility in global markets, the onshore renminbi bond market has provided a relatively stable financing environment. The transaction attracted 8.66 billion yuan in total orders, with the three-year and five-year tranches oversubscribed by 1.55 times and 1.63 times, respectively.

"The strong investor demand underscores the growing sophistication of China's onshore bond market, which is an important component of our global funding and capital management strategy as we continue to optimize our international liability structure," said Fiona Ip, APAC treasurer of Deutsche Bank.

The investor base included commercial banks, asset managers and overseas institutional investors, demonstrating growing global interest in renminbi-denominated assets. The final coupon rates were 1.95 percent for the 3-year tranche and 2.13 percent for the 5-year tranche.

"This significant issuance reflects strong investor confidence in Deutsche Bank's credit strength and long-term strategy, while also highlighting the growing attractiveness of the RMB bond market to a diversified investor base," said Rose Zhu, Deutsche Bank China chief country officer.

As a bridge between China and global markets, the bank remains committed to injecting fresh momentum into Sino-European and Sino-German economic cooperation, leveraging its global network to help clients benefit from the continued opening-up of China's financial sector, Zhu added.