A giant panda at the Dujiangyan Base of the China Conservation and Research Center for Giant Pandas. (Photo: VCG)

BEIJING, Jan. 18 (Xinhua) -- Deutsche Bank has issued its first panda bond in China, raising 1 billion yuan (147.92 million U.S. dollars) via three-year senior preferred notes, the bank said on Wednesday.

The proceeds of the transaction will be used for general group funding purposes, the bank said in a statement, stressing that it will be able to tap directly into China's deep onshore bond market.

Panda bonds are yuan-denominated debts sold by overseas issuers in China. Launched in 2005, the market has witnessed booming growth since 2015 and has become a significant financing channel for overseas institutions and enterprises.

"Increased international investor and issuer activity is an important step in China's capital market opening and global financial system integration," according to Deutsche Bank Asia Pacific Chief Executive Officer and Member of the Management Board Alexander von zur Muehlen.

Deutsche Bank China Chief Country Officer Rose Zhu said the bank's first panda bond has demonstrated the value of accessing China's onshore market for international issuers.