Australian dollar

A trio of European public sector issuers tapped Kangaroo and Kauri deals on Wednesday as bankers bemoaned the shortage of larger deals in Australian dollars.

Year to date CEEMEA supply in dollars is a little over 40% of what it was in recent years, but the percentage decline in other currencies has been even worse, data from Dealogic shows.

Apple on Monday looked set to add yet another currency to its rapidly growing portfolio after mandating for investor calls ahead of a potential Australian dollar debut.

Asian Development Bank and Inter-American Development Bank each tapped five year Kangaroos on Friday, seeing out a week of strong Australasian currency issuance.

United Overseas Bank this week priced Asia’s first tier one Basel III-compliant bonds, getting an S$850m ($670.9m) perpetual non-call five deal away at just 4.9% — a level that even rival bankers grudgingly admitted was tighter than they had expected, writes Frances Yoon.

Investors are sharpening their focus on niche currency markets as yields on euro and dollar denominated paper plummet. While Swiss investors face slim pickings on account of a punishing basis swap, investors in Europe and Asia are heading south to pick up high-yielding Kangaroo and Kauri paper. Nathan Collins reports.

China’s Ministry of Finance is planning to sell a Rmb1bn 15 year tranche as part of its Rmb23bn ($3.6bn) offshore renminbi bond offering at the end of the month, the first time it has issued in the maturity. That could lead to a boost in longer-dated issuance, said bankers and investors.

Bank of East Asia’s China branch raised Rmb1bn ($159m) from its second visit to the dim sum bond market late last week, offering a juicy yield pick up against outstanding notes from other lenders.

The appreciation of the renminbi has been a big driver of dim sum bond buying since the market opened less than two years ago, but increasing doubts about the rise of the currency have made investors more and more on yields. But there is still room for the currency to go up, according to Brian Jackson, a senior strategist at RBC Capital markets.

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.

Hong Kong-listed New World China Land included a novel feature on its debut in the offshore renminbi bond market, adding a letter of support from its parent, New World Development, to give extra comfort to investors in the high yield issue.

Chailease Finance launched its debut transaction in the dim sum bond market on Tuesday, becoming the first issuer from Taiwan to launch an offshore renminbi deal this year. French bank Société Générale is also planning to add to the selection of the credits in the market, and is now plotting its own deal.