China

Top 3 Offshore RMB DCM Transactions - 2012 YTD

Korea East-West Power will be on the road for four days next week to gauge demand for a $300m-$500m bond, the state-owned company’s first deal in the global debt market for almost seven years.

Korea Development Bank is planning to sell at least Rmb500m ($78.5m) of dim sum bonds this week — and now hopes to become a regular in the market after finding rising demand for renminbi loans from its clients.

Korea Development Bank is aiming to price its ¥30bn ($377m) Samurai bond before the end of the day, and has released price guidance pitching the deal at as much as 6bp inside a recent offering from Export-Import Bank of Korea (Kexim).

A large percentage of offshore renminbi bonds are unrated and covenant-light, leaving retail investors particularly exposed to potential bond defaults, according to the US asset management company.

Agricultural Development Bank of China (ADBC) is meeting investors to drum up demand for an offshore renminbi bond that will be worth as much as up to Rmb3bn ($471m). But some investors argue the bank will need to be pay up compared to its outstanding curve to ensure demand.

Export-Import Bank of China (Chexim) raised Rmb2bn ($314m) from a two-tranche deal on Monday, quickly following China Datang Corp’s Rmb1bn deal at the end of last week. Bankers said mainland issuers were tapping the market to avoid clashing with a pending deal from China’s Ministry of Finance.

Export-Import Bank of China (Chexim) approached offshore renminbi investors with a dual-tranche deal on Monday, offering a 15 year bond that matches the longest maturity ever sold in the market. But bankers are sceptical that many more issuers will sell long-dated deals before the end of the year.

China Datang Group met investors this week to drum up demand for its debut in the offshore renminbi market, heading to the market before a planned deal from China’s finance ministry.

L-Bank plans to be an active participant in the dim sum bond market to support the renminbi trade settlement activities of its region’s industrial giants, says funding official Sven Lautenschlaeger.