China

Ping An Group completed its first offshore renminbi market deal this week, raising Rmb2bn ($308.4m) from a deal that generated Rmb6bn of demand.

Morgan Stanley made its debut in the dim sum bond market last week, becoming the first US bank to test the growing investor base when it sold a Rmb500m ($77m) issue. It plans to keep the money outside of mainland China.

Far East Horizon, the financial leasing unit of Sinochem Group, proved there is strong demand available even for some unrated credits in the dim sum bond market, when it sold a Rmb1.25bn ($192.5m) three year bond last week.

A flurry of FIG Samurai deals is set to price within the next fortnight, as international issuers fill the gap left by inactive domestic borrowers. Rabobank’s deal will price on Friday, Commonwealth Bank of Australia’s at the start of June, and Lloyds will price an issue on June 10.

Rabobank Nederland may sell as many as five tranches in its Samurai issue this week. The triple-A rated bank is marketing fixed and floating rate tranches with a five year maturity as the core of the transaction.

Volkswagen made its debut in the dim sum bond market at the start of the week, raising Rmb1.25bn ($192.1m) that showed the increasing diversity, and ravenous demand, of the dim sum investor base.

Caterpillar could become the first foreign company to make a return trip to the dim sum bond market, after a series of meetings with investors in Hong Kong this week.

The Swedish National Housing Financing Corporation reestablished itself in the yen market this week, printing a triple tranche trade that it hopes will allow it to build out a curve and diversify products in the country, treasurer Per Tunestam told EuroWeek.

Rabobank and the Swedish National Housing Finance Corporation have begun marketing yen denominated transactions, taking advantage of the strong demand among Japanese investors that HSBC tapped on Friday.

The slow development of the offshore renminbi swap market could hold back the frenetic growth of bond issuance. For now that might seem like a blessing in disguise, but the swap market will need to develop if the dim sum market is ever to fulfill its huge potential.