China

Top 3 Offshore RMB DCM Transactions - 2012 YTD

Australia’s treasurer is visiting Hong Kong and Beijing to campaign for a direct currency exchange agreement, further signifying Australia’s growing reliance on Chinese commodity buyers.

German household appliance company BSH Bosch und Siemens Hausgeräte raised Rmb1.25bn ($197m) from a three-tranche offshore renminbi bond this week, returning to the market less than a year after its debut.

Singaporean commodity supplier Olam International raised S$350m ($275.4m) in its domestic market on Monday, the first deal to be drawn under a newly established $2bn euro medium term note programme.

Export-Import Bank of Korea is eyeing a raft of Asian currency bonds before the end of the year, and could tap the Philippine peso market for its next issue, a funding official told EuroWeek Asia.

Asset manager proposals for creating best practice in Asia’s bond markets should be supported by their investment decisions if they are to have a real impact.

Woori Bank and Hana Bank are planning tap the Samurai bond market in the coming weeks, following rival Shinhan Bank which raised ¥35bn ($438m) last week after offering a two tranche deal to Japanese investors.

Australian names have been largely absent from the dim sum market but the country’s commodity companies could start issuing bonds if China succeeds in making the renminbi the currency for natural resources.

Companies from the country will continue raising renminbi-denominated loans in its domestic debt market on the back of improving trade relations and foreign direct investment into China, believe analysts.

Top 3 Offshore RMB DCM Transactions - 2012 YTD

Korean and Gulf credits made their dim sum debut in private placements, but pricing expectations between issuers and investors remains wide and the development bodes ill secondary market liquidity, warn dealers.