Bank of China

A relatively stable credit backdrop has encouraged a swathe of Asian issuers to tap the bond market this week, ensuring a blistering pace of issuance.

On Tuesday Bright Food became the latest Chinese corporate to launch a euro bond in Asia. This has become a regular occurrence in recent months. However, this deal saw a higher than usual level of demand out of Europe, prompting some European bankers to speculate on what had changed the demand dynamics for this deal.

Shandong Energy Group Co is set to engage investors for its first offshore bond, with roadshows taking place from Thursday in Asia and Europe.

Bright Food launched a three year euro bond in Asia on Tuesday, setting initial guidance at 140bp over mid-swaps. The Chinese food and drink producer had roadshowed for a three or five year issue in Asia and Europe last week.

Yinchuan Tonglian Capital Investment Operation Co has mandated two banks for its first international dollar bond, with roadshows to kick off on Wednesday.

Tuesday is yet another busy day for China DCM, with Bright Food (Group) Co, Greentown China Holdings and Central China Real Estate in the market for bonds, while China Railway Group is set to meet accounts for its return to the international debt market.

After two days of no euro denominated corporate bond issuance, National Grid North America came with a rare corporate bond transaction on Wednesday. Pricing for the seven year deal moved in 25bp from the wide end of initial price thoughts (IPTs) in a trade that bankers away from the deal praised.

Chinese investment banks and brokerages had a dazzling performance in Asian DCM during the first half, remaining the preferred choice for the country’s offshore issuers while also making big leaps in boosting their international client base. With their rise have also come increasing concerns around best market practices – but even these may soon be a thing of the past. Addison Gong reports.

Two Chinese banks sold dual tranche floating rate dollar bonds this week, taking advantage of the market’s enthusiasm to raise a combined $1.8bn. But the eagerness for the format appears to be waning.

Shanghai Pudong Development Bank Co is back in the market with a dual tranche floating rate dollar deal, which it is selling through its Hong Kong branch.

Bank of China Hong Kong became the latest bank to join a rush of floating rate issuance on Monday, closing a dual-tranche deal.

Guangdong Hengjian Investment Holding is marketing its debut dollar bond while Bank of China's Hong Kong branch is taking bids for a dual tranche floating rate transaction.