Asia Pacific

Taiwanese banks should take advantage of favourable market conditions for offshore renminbi (CNH) bond issuance to increase their reserves, rather than rely on new branches in China and Hong Kong.

Philippine geothermal energy producer Energy Development Corp and developer Filinvest Land plan to sell Ps18bn ($422.6m) of domestic bonds between them, joining a string of other issuers rushing to tap the market amid concerns that borrowing rates will move up in the second half of the year.

Singapore’s domestic bond market attracted several borrowers this week, keeping bankers busy and making up for the absence of any Asian deals in the international debt market.

The passing of Australian covered bond legislation gave the covered bond market a timely fillip. Without the arrival of Australian issuers, 2012’s year to date level of supply would be even further behind last year’s. As such, subdued eurozone issuance has quickly turned Australian covered bonds into a pillar of the market – and not just a convenient safe haven trade.

The Chinese government will continue to allow the renminbi to appreciate until the US election is over, says Bank Sarasin.

Taiwanese banks may open new branches in China and Hong Kong to meet their long-term renminbi and CNH capitalisation needs, debt syndicate sources say.

Singaporean casino operator Genting is selling as much as S$700m ($555.2m) of perpetual bonds next week, turning to retail investors to increase the size of an already record-breaking deal.

Philippine geothermal energy producer Energy Development Corp and developer Filinvest Land are planning to sell Ps18bn ($420.5m) of domestic bonds between them, joining a string of other issuers that are rushing to tap the market amid concerns that borrowing rates will move up in the second half of the year.

Analysts say that Chinese regulators optimally timed the quota expansion for investment into the onshore market, allowing them to better control the flow and direction of capital.

In this round up of recent regulatory news, China more than doubles RQFII quota, Hong Kong plans voluntary clearing of OTC derivatives, India tightens algorithmic trading rules but relaxes those for venture capitalist funds, Indonesia reviews bond oversight, European Union endorses Hong Kong and Singapore’s credit rating agencies regulations.