China

All eyes were on Bank of China’s landmark four-currency deal on June 24, which was divided into 10 tranches in dollars, euro, Singapore dollars and offshore renminbi (CNH). It became the first bond ever issued in support of China’s plans to extend its global influence under the "One Belt, One Road" (OBOR) policy, but its success doesn’t necessarily mean there will be more, reports Narae Kim.

The Mongolian sovereign has issued its debut dim sum bond — the first from a non-Chinese Asian sovereign — raking in Rmb1bn ($161.1m) from a three year offering. The move saw strong support from the issuer’s Chinese neighbours and ended up becoming the largest high yield issue in the offshore renminbi market so far this year.

Banco ABC Brasil, a subsidiary of Arab Banking Corp (ABC), is looking to woo Taiwanese banks for a $150m two year fundraising. It held a bank presentation on June 23 in Taipei to meet lenders.

Chinese authorities will need to work on onshore and offshore RMB infrastructure and products to push on with their internationalisation agenda for the currency, as well as engage international institutions, thinktank Atlantic Council recommended in a June 22 report called "Renminbi Ascending".

Taiwan's Formosa bond market has taken off in 2015, helped by regulatory changes and a favourable cross-currency swap. Issuers from all over the world have flocked to take advantage of keen investor interest in the asset class, with foreign financial institutions particularly active in bringing new renminbi-denominated deals. Carrie Hong, editor of GlobalRMB, a sister publication of Asiamoney, discusses the recent developments in the market and its future prospects with a group of key participants representing issuers, investors and intermediaries.

Haitong UT Capital has closed books on a three year dim sum bond. The deal was multiple times oversubscribed and the familiar name managed to drive down its initial pricing.

Bank of China has opened books for what will be landmark deal issued in four different currencies in the same day. However, some investors decided not to jump into the deal, thinking that the issuer came out with too tight pricing from the beginning.

The Government of Mongolia has opened books to its debut dim sum bond on the morning of June 24. The country intends to be a regular in the currency and expects to be more active in the offshore bond market once its rating is upgraded, according to the country’s minister of finance and central bank governor.

Bank of China has signalled its commitment to Beijing’s “One Belt One Road” policy with plans for a new five-tranche, four-currency bond that will be issued by its branches along the trade rout. The senior notes in dollars, euro, Singapore dollar and offshore renminbi are expected to raise up to $4bn and are a global first.

Stronger-than-expected PMI data has prompted paying in short CNY swaps, flattening the curve. Meanwhile, Japan's megabanks are planning to issue offshore renminbi bonds in Tokyo, writes Deirdre Yeung of Total Derivatives.

Haitong UT Capital has launched a benchmark sized dim sum bond, making its way into a busy market as borrowers make the most of a small window of opportunity.

Reinsurance company Swiss Re has received the first RMB qualified foreign institutional investor licence in Switzerland. Meanwhile, Singapore-based UOB Asset Management has told GlobalRMB that it will launch three new RQFII products before the end of 2015.