Asia Pacific

Resimac printed a A$375m Australian non-conforming RMBS on Friday, punctuating a A$4bn plus week dominated by prime deals in the Aussie market.

It’s been three months since China officially launched its renminbi-denominated qualified domestic institutional investor (RQDII) scheme. Expectations had seemed high, but activity has been muted. For this year at least, RQDII looks set to be a mere dessert for China’s domestic investors rather than any main course.

The Central American Bank for Economic Integration (Cabei) returned to Taiwan’s Formosa bond market on March 12 with an Rmb800m ($127.5m) three year offering priced at 4.75%. The trade was the development bank's second Formosa, and it remains the only Latin American issuer.

IL&FS Transportation Networks is preparing to make another venture into the offshore renminbi debt market, with the Indian issuer opting for CNH in a bid to woo investors already familiar its story.

Yuanta Bank has added one more deal to this year’s red hot Formosa bond market by pricing a three year at 4.60% on March 12, two bankers close to the deal have told GlobalRMB. The final size was Rmb250m ($40m) and the issuer is considering another visit, depending on market conditions, said one of the bankers.

Euro covered bond issuance could be poised to moderate next week, though it is still likely that one or two deals could emerge at short notice. Issuers outside Europe are less inclined to bring euro benchmarks as a change in the basis swap with dollars has reduced the difference in the cost of funding.

International Finance Corporation has tapped a renminbi line to over Rmb3bn ($478.8m) as moves in the dollar/renminbi cross currency basis swap drove a burst of demand from Asian investors.

The stars aligned in the offshore renminbi market this week as moves in the cross currency basis swap with dollars drove a burst of demand in the medium term note format, with banks on the receiving end happy to print.

The return of two Australian major banks to securitization this week helped put more than A$4bn equivalent of new RMBS and auto ABS bonds on the market.

Hutchison Port, Central American Bank for Economic Integration and ICBCIL opened books for their respective bonds on Thursday, March 12, in what is looking to be a busy end of the week for the Asian debt capital markets.

Five months after South Korea saw its first locally issued and listed renminbi-denominated bond, HNA Group (International) Company (HNA International) has become the first corporate issuer in that market.

KfW, the German state development bank, returned to the offshore renminbi (CNH) market on Tuesday. Investors jumped in, enticed by the strong credit, allowing the borrower to increase the size of the deal.