China

Syndication has closed for a $1.5bn portion of a $1.93bn financing for the acquisition of Dutch company Philips’ LED component and automotive lighting business.The deal became a talking point among bankers, as it featured very low amortisation and a seven year tenor, which was considered aggressive by some.

Bank of Communications (BoCom) Financial Leasing and International Container Terminal Services (ICTSI) were back in the offshore bond market on August 18.

New cross-border financing schemes are being introduced across the four Chinese free trade zones (FTZs), with the newest three, in Guangdong, Fujian and Tianjin, seeing plenty of success after just four months of operations, according to foreign banks.

Hong Kong Airlines is likely to shelve the renminbi portion of what was to be a landmark dual-currency IPO and go with just Hong Kong dollars for the $600m listing.

Notebook parts maker Luxshare Precision Industry is in the market for a $200m revolver, with one bank at the helm. The Shenzhen-listed borrower is paying generous all-ins for the borrowing, which comes with a $100m greenshoe.

Less than two weeks after China's first margin loan ABS made its debut the product seems to have already struck a chord with the country’s brokerage industry. One of the top Chinese brokers, Citic Securities, obtained board approval on August 14 to sell up Rmb1.5bn ($235m) of ABS over the next two years.

Chinese automobile dealer Zhongsheng Group Holdings has increased the size of its borrowing to $250m from the launch of $150m, raking in plenty of demand from lenders during general syndication. The borrower decided to diversify the set of currencies to include euros and Hong Kong dollars, as it wanted to limit its US dollar exposure in a depreciating renminbi environment.

The close trade links between Germany and China are the main driver for a promising German RMB market. Marcus Sehr, global head of institutional cash, global transaction banking, at Deutsche Bank, tells GlobalRMB that new trade transactions should be the real key to promote more local RMB use.

Kingboard Chemical Holdings is looking to increase the size of its loan to HK$6bn ($773m) from the launch size of HK$5bn, following robust demand from banks during general syndication.

In this round-up, China's cross border RMB trade settlement falls in July, Seoul plans to launch RMB/Won futures in October, Moscow Exchange sees growing CNY/Rouble spot and swaps turnover, China's central bank issued its yearly financial stability report, and the UK's foreign secretary said during a visit to China that London would keep supporting RMB internationalisation initiatives.

Dongfeng Nissan Auto Finance completed its return to the Chinese auto loan ABS market with a Rmb1.5bn ($242m) deal this week. Not only did the joint venture firm manage to get a bigger trade done, it also got far better pricing this time around than in its debut last year.

Everbright Securities Co has mandated seven banks to work on what would be the company’s first outing to the international bond market.