Asia Pacific

Malaysian telecommunications company Axiata Group sold only the second ever Islamic bond in the offshore renminbi market this week, pushing the deal to Rmb1bn ($157m) after finding plenty of demand from conventional investors.

Shinhan Bank turned to offshore renminbi bond investors for $95m of funding this week, managing to beat its dollar funding costs after taking advantage of a buoyant swap market.

Offshore renminbi margins will begin to trend down as banks fight to attract and retain deposits, leading to the erosion of asset yield improvement, believes Barclays.

Malaysian telecommunications company Axiata Group sold only the second ever Islamic bond in the offshore renminbi market this week, pushing the deal to Rmb1bn ($325.2m) after finding big demand from conventional investors.

Shinhan Bank turned to offshore renminbi bond investors for $95m of funding this week, managing to beat its dollar funding costs after taking advantage of a buoyant swap market.

Demand for rated corporate names means sukuk borrowers will find a good reception on the dim sum bond market but a lack of natural appetite for the renminbi could hamper deals flow.

Foreign banks are pitching hard to bring more Indian banks to the Singapore dollar market, after a S$250m ($203m) deal from Export-Import Bank of India proved that a recent market-opening trade from IDBI Bank was not just a one-off.

New Zealand’s ANZ National launched its second ever euro benchmark on Tuesday, finding strong demand for a €750m five year deal. The jurisdiction offers an attractive pick-up over its Australian neighbour, which, together with the hunger for fresh supply, is helping raise the bid for New Zealand covered bonds, said syndicate bankers.

Singapore’s Ezra Holdings returned to its local investor base last week, raising S$150m ($121.3m) only a week after selling its first deal in more than two years. But on its second visit to the market the company pushed for a more aggressive structure, closing a corporate hybrid that adds to a stream of supply in the market this year.

Banks and issuer in Taiwan look set to become a bigger feature of the dim sum market as regulator plans to drop restrictions.

Korea Development Bank became the first lender from the country to tap global investors after last week’s ratings upgrade of South Korea pushed down spreads and created tempting funding opportunities. KDB raised Rmb600m ($94.5m) from a tap of its dim sum bonds, and quickly turned to the dollar bond market once that deal was closed.