Asia Pacific

South Korean lender Hana Bank may tap the Japanese bond market in the second half of this year to complete its funding requirement, following a successful $500m transaction on Wednesday.

Commonwealth Bank of Australia came to market with its second euro benchmark of the year on Wednesday. The 10 year trade drew huge demand, allowing leads to print a €1.5bn deal an exceptional 11bp inside of initial price thoughts.

International companies look likely to account for a large amount of offshore renminbi debt issuance in the coming months as companies seek to raise renminbi funds at competitive rates.

London’s regulatory and geographic advantages – as well as its distance from Beijing – may make it a more enticing centre for offshore renminbi to global investors than Hong Kong.

HSBC is considering turning to the offshore renminbi for the first time, swelling the list of foreign banks in the market. Rival bankers said the big name recognition the bank enjoys in Hong Kong means it will have little trouble generating demand for the bond.

ICBC (Asia)’s Peter Leung explains to Asiamoney PLUS why the favourable window for dim sum bond issuance may have passed, and discusses alternatives for banks looking to raise cash.

Investors will minimise exposure to the onshore renminbi derivatives market after the doubling of the currency’s trading band which is expected to increase volatility, say experts.

Philippine conglomerate SM Investments plans to issue as much as Ps15bn ($350.5m) of bonds to domestic retail accounts, returning to smaller investors for the first time in around three years.

New World China Land raised Rmb1.5bn ($238m) from the sale of three year dim sum bonds last Thursday, returning just two weeks after its debut in the market — and becoming only the third issuer to ever tap a dim sum bond.

Société Générale became the first foreign bank to turn to the offshore renminbi market to fund its operations in mainland China, when it sold a Rmb500m ($79.4m) deal last week. The French bank now looks set to become a regular borrower in the market.

Regulators are poised to allow select Chinese corporates to tap the offshore renminbi loan market, but tight CNH liquidity is poised to limit activity.

The Chinese currency’s strengthening stance has become weaker on the back on fading structural and cyclical forces, says the bank.