China

Bank of China is back for more offshore renminbi funding, this time through its Luxembourg branch, having mandated banks for a new bond.

China Chengtong Development Group has issued the first ever dim sum bond to use an RMB-denominated standby letter of credit (SBLC). The three year deal priced on April 30 at 4% with a size of Rmb600m ($96m). Agricultural Bank of China (ABC) provided the SBLC via its Beijing branch.

Export-Import Bank of China (Chexim) has opened guidance on a new multi tranche offshore renminbi bond.

Sinochem unleashed another bond into the market less than two weeks after it raised $500m with a five year issue. This time, the Chinese state owned conglomerate is offering its sophomore dim sum with a three year transaction.

Two small Chinese issuers have come to the dim sum market with renminbi-denominated standby letters of credit (SBLCs) from Agricultural Bank of China (ABC). Such SBLCs have only been used on dollar deals before, and many market participants reckon the two new issues are setting an example for other small or unfamiliar names that want to tap dim sum.

Export-Import Bank of China (Chexim) is seeking to launch a multi tranche transaction into a CNH market that is quickly awakening from two weeks of hibernation. Alongside China Construction Power Corporation, it is among a number of issuers that have executed deals or announced mandates during the past week.

Hainan Airlines is seeking its second publicly syndicated offshore renminbi issue, after announcing last month that it needs Rmb40bn ($6.49bn) of funding in 2014 to support business objectives.

Rizhao Port (Hong Kong), a wholly-owned subsidiary of Rizhao Port Group, is eyeing its debut offshore renminbi-denominated bond next week. The proposed bond will be enhanced by a standby letter of credit (SBLC) to be issued by Agricultural Bank of China (ABC), Shandong Branch, and a keepwell deed to be provided by the company.

China Chengtong Development Group this week priced the first ever dim sum bond to use an RMB-denominated standby letter of credit (SBLC). The three year deal priced on Wednesday night at 4% with a size of Rmb600m ($96m). Agricultural Bank of China (ABC) provided the SBLC via its Beijing branch.

Frankfurt struck a blow this week in its battle to become Europe’s primary hub for renminbi business when German state development bank KfW became the first issuer to list renminbi bonds on the city’s stock exchange. The city is likely to become a popular spot for European issuers — particularly German corporations — listing similar debt.

China Power International Development returned to the dim sum market on Tuesday with an Rmb2bn ($324m) three year issue. It was the first Asian offshore renminbi deal in two weeks.

China's Ministry of Finance (MoF) will sell a total of Rmb28bn ($4.48bn) of renminbi-denominated bonds in Hong Kong this year, marking the biggest annual CNH sale from the MoF since its first auction in 2009.