Asia Pacific

A set of recent dim sum bond breakthroughs has encouraged several Chinese firms to tap the dim sum debt market in order to fund their acquisition plans.

Beijing’s first step in allowing four local authorities to issue bonds is not only beneficial for those seeking direct access to capital market funding, but for the central government as well.

Debt bankers working in the offshore renminbi market are hoping to launch a number of deals over the next few weeks, capitalising on the success of China National Oil Petroleum’s Rmb3bn ($470m) financing last week.

Bankers in the Singapore dollar bond market enjoyed a flurry of activity this week, with issues from Wharf and Cheung Kong (Holdings) — and a lower tier two deal from Standard Chartered.

Standard Chartered says the lower tier two it issued in Singapore dollars on Thursday is just part of business as usual for the growing institution.

The dim sum bond market came back to life this week after a three week hiatus. China National Petroleum Corp (CNPC) closed the most eye-catching deal, raising Rmb3bn ($469.9m) from a dual-tranche offer.

The Shanghai-listed iron and steel producer is set to be the first onshore entity to sell dim sum bonds in Hong Kong, further boosting its role as an offshore renminbi centre.

The growth of the country’s banker acceptance (BA) bills decelerated sharply in the last three months, representing a 5% quarter-on-quarter decline.

Standard and Poor’s believes the dim sum bond market will likely to accelerate rapid growth thanks to the fast-growing accumulation of offshore renminbi deposits.

Funding officials from China National Petroleum Corp (CNPC) will meet investors in Hong Kong and Singapore on Tuesday, pitching an offshore renminbi bond that could close before the end of the week.

Malaysian state-owned investment company Khazanah Nasional became the first borrower to sell an Islamic bond in the offshore renminbi market last week, raising Rmb500m ($73.4m) from a deal the company postponed only a month before.