China

Nine months after Rabobank sought to sell its first-ever CNH bond, the Dutch bank has finally made its dim sum debut – and plans for more bonds to build out its yield curve, says a funding official.

Sun Hung Kai & Co started pitching its debut dollar bond at the start of the week, offering a private bank rebate and a juicy yield in a bid to ensure the deal goes smoothly.

The price of the same bond can differ considerably in the offshore and onshore RMB markets, due to a divergence in opinion about government support, but whether this is justified is yet to be tested.

Foreign banks are pitching hard to bring more Indian banks to the Singapore dollar market, after a S$250m ($203m) deal from Export-Import Bank of India proved that a recent market-opening trade from IDBI Bank was not just a one-off.

Malaysian telecommunications company Axiata Group sold only the second ever Islamic bond in the offshore renminbi market this week, pushing the deal to Rmb1bn ($157m) after finding plenty of demand from conventional investors.

Shinhan Bank turned to offshore renminbi bond investors for $95m of funding this week, managing to beat its dollar funding costs after taking advantage of a buoyant swap market.

Offshore renminbi margins will begin to trend down as banks fight to attract and retain deposits, leading to the erosion of asset yield improvement, believes Barclays.

Malaysian telecommunications company Axiata Group sold only the second ever Islamic bond in the offshore renminbi market this week, pushing the deal to Rmb1bn ($325.2m) after finding big demand from conventional investors.

Shinhan Bank turned to offshore renminbi bond investors for $95m of funding this week, managing to beat its dollar funding costs after taking advantage of a buoyant swap market.

Demand for rated corporate names means sukuk borrowers will find a good reception on the dim sum bond market but a lack of natural appetite for the renminbi could hamper deals flow.

Foreign banks are pitching hard to bring more Indian banks to the Singapore dollar market, after a S$250m ($203m) deal from Export-Import Bank of India proved that a recent market-opening trade from IDBI Bank was not just a one-off.