Daimler first to issue corporate 'panda' bond in China

FRANKFURT, March 14 Fri Mar 14, 2014 4:24am EDT

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FRANKFURT, March 14 (Reuters) - German luxury carmaker Daimler AG said it sold a 500 million renminbi ($81.5 million) bond to Chinese investors, the first foreign, non-financial bond issue in China's domestic market.

"We are pioneers with this bond issue, and at the same time are helping to open up the Chinese capital market for international issuers," finance chief Bodo Uebber said in a statement issued on Friday.

The bond met with strong demand and was broadly placed in the market, the company added.

The so-called panda bond adds fixed income as a source of funding to the bank loans currently used as the main way to refinance a large part of Daimler's Chinese business.

Daimler is currently investing to overhaul its factories in China, the world's second-largest economy, to equip them for production of the new Mercedes' C-class sedan for Chinese customers.. ($1 = 6.1361 Chinese Yuan) (Reporting by Ludwig Burger; Editing by Victoria Bryan)

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