Asia Pacific

In this round-up, China’s industrial profit climbed in July, the Canadian dollar overtook the renminbi as the fifth most used currency for international payments, and HSBC conducted the first transaction in the interbank market for foreign investors with a T+3 settlement cycle.

Rare international bond issuer Export-Import Bank of India turned to Japan this week for a yen-denominated deal. The ¥32bn ($301.2m) trade was its first standalone Samurai bond since 2006.

Bank of Communications Financial Leasing Co priced a small $600m dual-tranche transaction, attracting twice as much interest on a floating rate note compared to a fixed rate bond.

The World Bank is planning to add fully digital cash settlement, multiple currencies and more nodes to its ‘bond–i’ platform, according to a banker involved in developing the blockchain system. Earlier this month, the supranational added tap functionality, as it raised A$50m ($33.7m) of capital.

A pair of European agencies placed taps at the long end of the Kangaroo curve this week, printing at the nine and 12 year points. Yields on these notes have fallen compared to previous taps, as the Kangaroo market feels the effects of a global bond rally.

Subway operator Tianjin Rail Transit Group has raised a €200m Schuldschein loan, becoming the first Chinese company to tap this market. Bankers believe similar deals will follow, given the market’s appeal.

Being in Asia for as long as I have, one gets used to the quirky nature of some of the region’s smallest markets. My personal favourite is Myanmar, a country long closed off to the outside world and now slowly coming into its own.

PSA International, the Temasek Holdings-owned port operator, seized $500m from its return to the dollar bond market after a three year hiatus. It priced the 10 year deal right around fair value, thanks to its opportunistic timing and strong credentials.

Korean Air Lines Co returned to the policy bank-guarantee structure for its latest offshore bond this week, raising $300m at a favourable price.

Credit Suisse has merged its loan and bond syndicate teams into one unit, and named the new heads of its Asia Pacific financing group (AFG).

JPM expands China JV team — Natixis names Apac infra finance head — CLSA makes senior debt hires — BNP closes Manila offshore branch

The Indian government has done an about-turn on plans to introduce higher taxes on foreign portfolio investors as it finds ways to boost sentiment in the market. Experts reckon the finance ministry “misjudged” the state of things in India, and scrapping the tax will give a much-needed impetus to the country’s equity capital markets. Rashmi Kumar reports.