Asia Pacific

Two recent loans from Sri Lanka have once again put the spotlight on the country, which has seen few borrowers going down the syndicated route. Conversations with bankers reveal prominent arrangers are interested in securing business out of the South Asian country, but upcoming elections, the small size of its conglomerates and unfamiliarity pose constraints to dealflow, writes Shruti Chaturvedi.

South Korea’s Shinhan Bank wrapped a stylish return to the offshore renminbi market on July 27, raising more than initially targeted on the back of strong demand. The issuer was also able to price the new dim sum bond inside its dollar curve thanks to a favourable cross-currency swap (CCS).

China Merchants Holdings (International) became the third Chinese issuer in less than a week to access the international bond market with a dual-tranche offering split between five and 10 year bonds on July 27. The identical structures and close proximity of the deals meant it was more or less the same result for the Chinese conglomerate.

Ezion Holdings chose an unusual structure for its most recent bond outing in Singapore dollars. The borrower sold a bond with the support of a loan facility from sole lead DBS, which allowed it to save around 300bp in funding costs.

Rizal Commercial Banking Corp (RCBC) is in the market for a $200m three year loan, making it the fifth lender from the Philippines to seek funds offshore this year. Two mandated lead arrangers and bookrunners are leading the syndication. The deal comes with a $100m greenshoe.

China Modern Dairy has increased the size of its second overseas syndicated loan to $300m from a launch size of $150m, after two dozen retail lenders joined in general. The loan attracted lenders from Taiwan, China, Hong Kong, Japan, Indonesia, India and Korea.

Ever since China started its securitization market a decade ago, there has been a copious amount of talk about the vast potential for the product. While it’s true that securitization has been developing strongly, the country’s true potential lies in the yet mostly untapped residential mortgage-backed security (RMBS) sector.

Tingyi (Cayman Island) Holding Corp is making its inaugural appearance in the offshore renminbi (CNH) bond market on July 30, taking bids for a three year Reg S trade.

Jing Zhang Brogle has been appointed CEO of the Hong Kong arm of Edmond de Rothschild Group. She moves to the bank with 14 years of experience in private banking and asset management.

Problems in Chinese and emerging market economies have become the biggest fear for credit investors for the rest of 2015, according to Bank of America Merrill Lynch’s July Credit Investor Survey – having not featured at all as a concern in the bank’s May poll.

Chinese company Minsheng Financial Leasing has rolled out a $200m fundraising with two mandated lead arrangers and bookrunners. The deal follows an onshore facility being raised by the same borrower.

Ezion Holdings has opened books for a five year Singapore dollar bond offering, which is supported by a loan facility from DBS, the first time such a structure has been seen in the city state.