China

A $12.7bn Asia-focused syndication to back China National Chemical Corp’s (ChemChina) acquisition of Swiss firm Syngenta has concluded with eight new lenders joining.

China State Construction Engineering Corporation sealed a dual-tranche offering split between a three year and five year this week, coming to the market in a week that hosted other deals from Chinese state-backed companies. But thanks to its link to the central government, the issuer managed to raise $1bn effortlessly.

BMW Automotive Finance is looking to bring out its Rmb4bn ($609m) Bavarian Sky China 2016-1 Trust next week in what would be the joint largest China auto loan ABS by a foreign company.

Standard Chartered’s Renminbi Globalisation Index (RGI) dropped for the sixth time in seven months, indicating a further decline in offshore renminbi activity globally.

In this round-up, China introduces a new calculation for bank’s reserve ratio, trading of RMB futures in Hong Kong drops, the Shenzhen Stock Exchange (SZSE) is ready for Hong Kong Connect, and Singapore’s central bank sees a slowdown in RMB internationalisation. Plus, a recap of GlobalRMB’s coverage this week.

A Bank of China index tracking the yield differential between onshore and offshore renminbi debt shows that dim sum bonds continue to look expensive for issuers although the gap is starting to shrink.

According to the statement emailed by Cathay Financial Holdings to GlobalCapital Asia, the Ultrasonic loan was signed among Nomura and the participants in August 2014. A month later, the CEO of the company Qingyong Wu went missing after which the company defaulted on its obligations.

Legal action launched by six Taiwanese lenders against Nomura for a syndicated loan that went into default, has unearthed simmering conflicts in the tightly knit Asian syndicated loan community. The fallout will have ramifications for Nomura and the wider loan market, writes Shruti Chaturvedi.

Zhongyu Gas fires up refi — Trans Corp hit syndication — Cheng Loong raising Vietnam funds — Global Bank gets bigger loan

Tianjin Infrastructure Construction (TJII) has become latest Chinese local government financing vehicle to tap the international bond market, pricing a new $500m three year. Bankers on the deal were encouraged to see a Chinese LGFV trade resonate well with offshore investors who had previously remained on the sidelines.

The Asian ex-Japan high yield bond market received a boost on Wednesday with Samvardhana Motherson Automotive Systems Group and Xuzhou Economic and Technology Development Zone State-Owned Assets Management (Xuzhou ETDZ) opening books for their dollar debuts.

The news that the US is to receive a Rmb250bn investment quota has been greeted as a welcome, if long overdue, development. Plans are also underway to set up a renminbi clearing system in the US, but the challenge will be convincing the country’s corporates to use the currency.