China

In this round up of recent offshore renminbi news, China sign swap deal with Brazil, Deutsche Bank revises its forecast for the renminbi and Bank of China HK reports jump in CNH deposits and loans.

Development bank Cabei became the first borrower from Latin America to rely entirely on Asian investors for an offshore renminbi bond on Monday, when it raised Rmb500m ($79.7m) and opened up what funding officials say could become a regular source of funding in the future.

Hotel operator Dorsett Hospitality International raised Rmb850m ($135.4m) in the offshore renminbi bond market this week, finding some of the money it needs to fund future acquisitions.

The balance of risks in the offshore renminbi market points to a potentially rising basis risk in the next few months due to sharp yen depreciation, rising dollar strength and inflationary pressures, says the bank.

The Chinese central bank may continue with loose monetary policies in order to boost growth, potentially triggering the occurrence of a financial crisis, says the bank.

CNH bond issuers have raised more cash through taps in 2013 to date than in previous years, enticed by the sizes and lower yields they can achieve. More, including lower-rated names, are poised to follow.

Brazilian bank BTG Pactual showed the resilience of the offshore renminbi market this week, when it raised Rmb1bn ($159m) from a bigger-than-expected deal despite appealing to an investor base that is proving reluctant to take on new risk.

Top 3 Offshore RMB DCM Transactions - 2013 YTD

In this round up of recent offshore renminbi news, Taiwan reports record deposit figures, German corporate giant launches VC fund and US lawmakers press China on exchange rates.