UBS raised money in China's onshore bond market for the first time, and investors piled in — a sign of confidence in the bank and in China's opening financial markets.

• UBS sold 2 billion yuan of five-year bonds inside China at 1.78%, the lowest rate any foreign bank has paid on a five-year panda bond.
• Demand was more than three times the amount on offer, and the gap over China's benchmark policy-bank rate was the narrowest on record.
• It is the first time a Swiss bank has issued this kind of bond, which foreign borrowers sell in yuan inside China.
• CEO Sergio Ermotti called China a key part of the bank's growth plans, casting the deal as a long-term commitment.
• The panda bond market is booming, with over 200 billion yuan issued so far this year as China loosens rules for foreign issuers.

Outlook: Cheap onshore funding and easier rules should pull more foreign banks and companies into China's bond market in the months ahead.