China

Pirelli, the Italian tyre manufacturer acquired by ChemChina last year, will complete syndication of its loan refinancing this week, according to a lead banker.

Bank of China has printed Asia’s largest green bond in a $3bn deal split between dollar, euro and CNH tranches. The landmark trade attracted strong investor demand and gave a much needed fillip to the dim sum bond market.

Yunnan Metropolitan Construction Investment Co has become the latest local government financing vehicle in the offshore bond market. With more new issues in the pipeline, the LGFV bond spree shows no signs of slowing but the market is not open to all names.

Credit Suisse has sent out invitations for a $150m three year bullet loan for China Auto Rental (Car).

Chinese state-owned Beijing Capital (Hong Kong) has refinanced a $180m one year bridge loan signed last year.

Water treatment company Citic Envirotech, which tapped an existing bond last week, has now set its sights on the syndicated loan market.

Shenzhen Expressway has mandated banks to prepare its first outing in the international bond market in more than four years.

Russian and Chinese authorities are working towards the establishment of a renminbi hub in Moscow, at a time when Russian banks are seeing growth in RMB-related business and the central bank has begun investing in the currency.

After months of inactivity, offshore renminbi-denominated bonds finally came to life this week with two Chinese issuers announcing their respective transactions. The deals are widely expected to fare well and have excited some market participants, but it would be premature to call a comeback of the dim sum market.

CICC has responded to recent speculation that it is merging with China Investment Securities, saying there are discussions for a strategic co-operation although nothing concrete has been signed yet.

It has been mooted for months but the Shenzhen-Hong Kong Stock Connect remains elusive with little detail on when the scheme will launch. But instead of being too overly fixated on timing, market participants said the focus should instead be on the scheme’s potential impact and the further liberalisation of China’s securities market.

Firm data on the Chinese economy has backed paying in CNY swaps and some steepening across the 1s/10s slope. Sources still say the curve is too flat. Bank of China will price a Green bond issue later today, writes Deirdre Yeung of Total Derivatives.