Asia Pacific

The Tokyo Pro-Bond market has welcomed its first offshore renminbi offering, with Mizuho Bank printing an Rmb250m ($41.1m) trade.

Euroclear Bank, the Brussels-based international central securities depository (ICSD), and China Construction Bank (CCB) on June 29 signed a Memorandum of Understanding (MoU) to further develop the offshore renminbi capital market. The signing was attended by China’s premier Li Keqiang.

The Budapest branch of Bank of China was appointed by People's Bank of China as the official RMB clearing bank in the country on June 27, PBoC said in a statement.

China ABS has been developing at a fast pace since the government reopened the market in 2012. With foreign investors buying auto loan ABS from international car manufacturers, bankers wonder if they could issue offshore renminbi ABS to attract an even broader investor base.

Venezuelan state oil company PDVSA’s plans to raise Chinese yuan-denominated bonds show that the beleaguered nation is unable to raise financing from its traditional markets, said investors.

The latest survey on RMB business in London showed that in 2014 the FX trading more than doubled in size, with daily volumes of $61.5bn, while other areas, including trade finance and RMB deposits stabilised on the 2013 levels.

All eyes were on Bank of China’s landmark four-currency deal on June 24, which was divided into 10 tranches in dollars, euro, Singapore dollars and offshore renminbi (CNH). It became the first bond ever issued in support of China’s plans to extend its global influence under the "One Belt, One Road" (OBOR) policy, but its success doesn’t necessarily mean there will be more, reports Narae Kim.

The Mongolian sovereign has issued its debut dim sum bond — the first from a non-Chinese Asian sovereign — raking in Rmb1bn ($161.1m) from a three year offering. The move saw strong support from the issuer’s Chinese neighbours and ended up becoming the largest high yield issue in the offshore renminbi market so far this year.

Banco ABC Brasil, a subsidiary of Arab Banking Corp (ABC), is looking to woo Taiwanese banks for a $150m two year fundraising. It held a bank presentation on June 23 in Taipei to meet lenders.

Chinese authorities will need to work on onshore and offshore RMB infrastructure and products to push on with their internationalisation agenda for the currency, as well as engage international institutions, thinktank Atlantic Council recommended in a June 22 report called "Renminbi Ascending".

Taiwan's Formosa bond market has taken off in 2015, helped by regulatory changes and a favourable cross-currency swap. Issuers from all over the world have flocked to take advantage of keen investor interest in the asset class, with foreign financial institutions particularly active in bringing new renminbi-denominated deals. Carrie Hong, editor of GlobalRMB, a sister publication of Asiamoney, discusses the recent developments in the market and its future prospects with a group of key participants representing issuers, investors and intermediaries.

Haitong UT Capital has closed books on a three year dim sum bond. The deal was multiple times oversubscribed and the familiar name managed to drive down its initial pricing.