UBS China head: RMB key funding option for global institutions

UBS has priced its first ever panda bond, becoming the first Swiss financial institution to tap the onshore renminbi market, with a 1.78 percent coupon — the lowest on record for a five-year panda bond issued by a foreign financial institution.

In an interview with China Perspective, Janice Hu, China country head of UBS AG, said the growing international connectivity, maturity and relevance of China's bond market have made it a natural funding market for international institutions.

"We see the onshore RMB market as an important component of UBS's diversified funding toolkit," Hu said, adding that panda bonds and RMB financing can play an increasingly meaningful role as international institutions diversify their funding amid heightened global financial volatility.

Zhu Jingyi and Wang Zhiyi contributed to this story.