Accounting roadblock keeps ADB, IFC away from Pandas

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By Carrie Hong
28 Apr 2016

Asia Development Bank (ADB) and the International Finance Corp (IFC), the first issuers to sell Panda bonds, will not be able to return to the market quickly as Chinese regulators are refusing to grant them an exception to the accounting rules.

The two supranationals file their financial reports under the US Generally Accepted Accounting Principles (US GAAP). However, for Panda bonds, Chinese regulators only recognise People’s Republic of China GAAP (PRC GAAP), Hong Kong GAAP (HK GAAP) or the European Union’s International Financial Reporting Standards (IFRS).

Although both ADB and ...

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