China

The Republic of the Philippines is planning a bumper bond offering, raising as much as $3bn from a mix of global peso bonds and dollar-denominated debt — underlining the importance of synthetic peso bonds to the country’s funding strategy.

Westpac Banking Corp became the latest Australian bank to turn to Japanese investors for funding this week, raising ¥100bn ($1.26bn) from a deal that bankers hope will encourage Australia’s big four banks to return to the market soon.

China Eastern Airlines Corp made its debut in the dim sum bond market this week, raising Rmb2.5bn ($388.2m) from a heavily-demanded deal only two weeks after it became one of several companies to hold back a new issue.

Hong Kong’s first real estate investment trust, Link REIT, is launching a seven-year fixed rate note, hoping to raise HK$510 million. BOC(HK) is also look to tap the market with a renminbi CD.

In a move to prevent hot money flooding into China the country’s central bank will regulate applications from mainland companies to remit their renminbi funds raised overseas for purposes other than trade financing. Analysts expect such restrictions will slow offshore renminbi funding.

Strategists at the French bank predict the Hong Kong Monetary Authority relaxation of the rules surrounding banks’ exposure to offshore renminbi will lead to a surge in FX swap trading and act a spur for greater bond market activity.

Hangzhou ZhongCe Rubber raised Rmb900m ($139.7m) this week, braving a market that has taken knocks over the last month as fears about European sovereign debt and the US debt ceiling finally hit a market that has been steadily rising for much of the year.

The country’s finance ministry intends to issue up to Rmb10 billion of renminbi-denominated bonds in August or early September, marking the sovereign’s third foray into the Hong Kong-based debt market, market sources said.