Asia Pacific

United Overseas Bank sold a S$1.2bn ($949.83m) tier two deal this week, and bankers hope the strong response to the deal will encourage more Asian banks to sell subordinated debt in the Singapore dollar market.

Bayerische Landesbank (Bayern LB) launched its first euro benchmark covered bond in over a year on Wednesday, bringing a 10 year public sector backed Pfandbrief originally mandated in July 2011. The trade prioritised pricing over size and received less interest than recent German deals. At the less traditional end of the covered spectrum, Nykredit Realkredit opened books on a tap of a recently issued junior covered bond.

Companies from Taiwan will only increase their usage of Hong Kong’s dim sum bond market if Taipei allows its domestic banks to conduct renminbi business, believe analysts.

Treasurers are advised to place their ‘fluctuating cash’ in money market funds as these ‘AAA’-rated instruments offer diversification, liquidity and higher returns amid increased market volatility, says HSBC.

The senior market took centre stage again on Tuesday, dissuading covered issuers from competing with another trio of unsecured trades after Westpac’s slow bookbuild on Monday. The Australian issuer closed the spread gap with its Nordic peers, but found demand lacklustre compared with earlier Australian benchmarks.

The Laos central bank has appointed ICBC as a clearing bank for renminbi, putting the country ahead of London and other potential offshore centres which must clear the currency through Hong Kong.

China’s new creation of a special economic zone in Qianhai is expected to boost the offshore renminbi market, increasing dim sum bond yields and money market rates, says the French bank.

Australia’s Westpac Banking Corp returned to the euro market to launch the jurisdiction’s first seven year covered bond on Monday. But a trio of competing senior unsecured trades contributed to a slow book build, said syndicate bankers, with some also suggesting guidance had been set too tight.

Philippine investment bank First Metro Investment Corp plans to sell up to Ps7bn ($165.6m) of peso bonds in July, making its second offering in the domestic debt market in less than a year.

Malaysian banks will step up their domestic bond issuance in the second half of the year, helping them fund planned acquisitions, both in the country and offshore.

The chairman of Hong Kong Exchanges and Clearing thinks China’s Ministry of Finance should list bonds on his bourse. He is correct – and others should do so too, to foster market transparency.