Chinese issuers step up SBLCs as more seek overseas bonds

Chinese issuers are increasingly turning to standby letters of credit (SBLCs) to access the offshore dollar bond market, writes Lorraine Cushnie. The latest example was a deal for China Merchants Land on Wednesday, and another is expected next week. The benefits for borrowers are clear, and even though investors retain doubts over the structure, their use is only set to increase. It could even spread into offshore renminbi bonds.