China

The opportunity for greater participation by Taiwanese companies and financials in China’s capital markets may incentivise them to sell dim sum bonds, with state-owned banks and tech giants expected to lead the charge.

Top 3 Offshore RMB DCM Transactions - Last 12-month rolling

ABN Amro sold its Kiwi dollar debut on Thursday as it ramps up its niche currency issuance, diversifying its funding base into investors looking for high yielding deals, a senior funding manager at the Dutch bank told EuroWeek Bank Finance.

Longfor Property kept the Chinese real estate flag flying on Wednesday with a successful 10 year non-call five bond, but supply from the sector is beginning to slow.

Powerlong Real Estate sold a $250m five year non-call three bond at the end of last week. Many of the biggest mainland property names have been and gone already this year, making sub-benchmark deals more common. But a pipeline dominated by smaller and less well-known credits will not make execution any easier, said debt bankers.

Noble Group and Russian Agricultural Bank made their debuts in the dim sum market this week, launching dual Rmb1bn ($159m) three year deals on Wednesday. The dearth of issuance in the offshore renminbi market since the start of the year should have ensured good results for both borrowers, said bankers — but only Russian Agricultural managed to pull off a clear success.

Cosco Pacific priced a $300m 4.375% January 2023 deal at 265bp over Treasuries area as EuroWeek Asia went to press. Bank of China International, Deutsche Bank, JP Morgan and UBS managed the deal.

China Aoyuan Property Group returned to the market this week to add $100m to a deal that fell short last year, and this time it managed to attract even more investors than on its debut, said bankers.

Central China Real Estate priced a successful seven year non-call four deal at 8% this week, helped by its ownership structure and a pick-up over its secondary curve.