Deutsche Bank announced on Friday its plan to issue panda bonds in the China Interbank Bond Market. The bank has formally submitted an application to the People's Bank of China, the country's central bank.

The announcement was made by the bank during its Chief Executive Officer Christian Sewing's visit to China on Friday as a member of German Chancellor Olaf Scholz's business delegation.

"Our first panda bond issuance in the CIBM comes as China and Germany celebrate the 50th anniversary of the establishment of diplomatic ties. This year also marks Deutsche Bank's 150 years in China," said Zhu Tong, the bank's China chief country officer.

"The issuance showcases the bank's confidence in the future of China's capital market and the prospect of the renminbi as a global currency, as well as demonstrating our long-term commitment in China," Zhu said.

Samuel Fischer, head of China onshore debt capital markets at the bank, said: "For international issuers, China's onshore markets offer a stable and attractive funding environment via panda bonds. Foreign issuers increasingly look to panda bonds as a financing channel to support their business operations in China while meeting the goal of financing and risk management globally."

Deutsche Bank is one of two international banks with the Type-A lead underwriting license, a full license for debt financing instruments by non-financial enterprises in the CIBM, allowing the bank to provide debt issuance solutions to both local and foreign corporates.

The bank has completed 36 bond issuances for clients in the CIBM so far, with total value exceeding 40 billion yuan ($5.52 billion).