China

Asian borrowers should ready themselves for tighter covenants on their loans once the Covid-19 outbreak is brought under control, multiple senior loans bankers told GlobalCapital Asia this week. A much-needed price correction may also be coming, writes Rashmi Kumar.

Chinese bond issuers are confronting a chaotic market at the moment: onshore yields for state-owned enterprises have fallen to historic lows, offshore yields have ballooned and more than 50 issuers have been forced to cancel deals this month. Rebecca Feng and Addison Gong report.

International rating agencies have announced a slew of ratings downgrades or outlook changes for Asian companies as the Covid-19 outbreak puts pressure on their refinancing abilities. But DCM bankers and investors are expecting some good to come from these rapid changes. Morgan Davis reports.

An Ke Technology Co, a subsidiary of Chinese conglomerate Ping An Group, is in the market seeking a $300m three year loan.

Chinese property developer Radiance Holdings (Group) Co is getting ready to speak to potential investors for its Hong Kong IPO.

Chinese local government financing vehicle Taizhou Xinbinjiang Development Co navigated the volatile markets by opting for a club-style $219m international bond issuance.

New Hope Dairy, a Shenzhen-listed dairy farm owner and operator, is aiming to raise $102m from the loan market.

Industrial and Commercial Bank of China (ICBC) has received the nod to head offshore for capital, at a time when most of its peers have been tapping the liquid domestic market for funds.

Chinese pharmaceutical company WuXi AppTec Co is planning to raise primary equity through an issue of H-shares and its Shanghai-listed A-shares.

Chinese real estate developer Xinhu Zhongbao Co sold a club-style dollar bond on Tuesday, becoming one of the few Asian issuers to have come to the market in recent days. While a pipeline of deals builds up, many are unwilling to launch transactions amid the volatility.

A group of 23 banks and 12 securities houses completed 154 renminbi interest rate option (IRO) transactions worth Rmb12.8bn ($1.81bn) on Monday. The new derivatives product is viewed as a solid step for China’s interest rate reform.

China’s Xiaomi Corp is planning to print a Rmb1bn ($141m) private placement Panda bond next week, in what will be the smartphone and appliances maker’s first outing in the onshore bond market.