China

Volatility could increase concessions but CEEMEA, LatAm bankers prep more deals

Simplification will be a key objective as Basel reforms are evaluated over the coming years

Mainland China’s sustainable bond market has gone from strength to strength recently, with issuers and investors finding new opportunities and embracing international standards.

Dim sum MTN issuance from SSAs reached a record high in 2019, and the growth is set to continue next year. The renminbi’s inclusion in the IMF’s special drawing rights (SDR) basket and global bond indices will ensure growing appetite for the instrument, according to one MTN desk head.

A handful of rare visitors came to the marker this week to place debt in dollars and yen, and bankers scrambled for a QNB mandate.

Bankers were surprised that the African Development Bank placed a one year bond last week linked to environmental, social and governance (ESG) factors.

The African Development Bank has issued its first offshore renminbi bond, in what the supranational has described as a ‘strategic objective’ in response to a growing investor base for the currency.

Rating: Baa3/BBB/BBB

Qatar National Bank has sold a Rmb500m ($73m) three year bond through Standard Chartered, continuing its ongoing presence in this market.

Ireland is looking at the possibility of issuing its first ever benchmark inflation linked bond in 2019, amid an expected surge in the euro public sector linker market this year. Meanwhile, Portugal is waiting for the final approval of its inaugural Panda bond, which will be sold as part of an Rmb6bn three year programme.

Gazprom raised €1bn on Tuesday from the first public international bond sale from Russia since April saw the US imposing a punitive round of sanctions on the country. Rushydro followed on Thursday with a Rmb1.5bn ($220m) three year bond.

RusHydro will come to market for a dual tranche deal in rubles and offshore yuan, following a roadshow to promote the bonds.