KfW, the state-owned German development bank, has announced plans to issue renminbi-denominated bonds in 2006. It will be the third foreign institution to be permitted to issue so-called 'Panda bonds', following the recent success of the Asian Development Bank and IFC.
Horst Seissinger, director of capital markets, told the Financial Times that KfW intends to issue bonds in Thai bath, Malaysian ringgit and Chinese renminbi. ''The capital markets of emerging markets like China, Thailand, Malaysia or India will play a big role due to future economic developments and their growing populations. We want to look at these markets now to get our foot in the door early'' he said.