Morgan Stanley (MS) entered China's panda bond market with an offering of 2 billion yuan ($279 million), Bloomberg reported Friday, citing people familiar with the matter.

The company's unit, Morgan Stanley BV, priced the five-year notes at 1.98%, the people reportedly said. The price was around five basis points higher than the average yield of similar yuan-denominated corporate notes, the report added.

A Morgan Stanley spokesperson confirmed to Bloomberg the panda bond issuance, which is said to be the first panda bond issued by a US company.

Proceeds from the sale will be sent out of China to be used for general corporate purposes by subsidiaries to support activities, which could potentially include the company's offshore yuan business, the sources told Bloomberg.

Morgan Stanley did not immediately reply to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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