Currencies

China National Chemical Corp (ChemChina) is meeting investors for a euro bond this week, as it looks to raise funds to pay down debt taken for the acquisition of Italy's Pirelli.

In this round-up, the Hong Kong Stock Exchange saw surges in trading of offshore RMB (CNH) futures, BMO became the first Canadian bank to become market maker for CAD-RMB direct trading, and the country of Djibouti is launching a Silk Road Bank. Plus a recap of GlobalRMB’s top stories this week.

The transition to a new IMF special drawing rights (SDR) basket, inclusive of the renminbi, is just the starting point for efforts by China and the IMF to see the basket take up a greater role as a global liquidity tool.

The future of international bank capital agreements from the Basel Committee is hanging in the balance with Donald Trump’s presidency, plus scepticism from some of Europe’s most senior policymakers, undermining global consensus on setting the next round of rules.

The European Investment Bank added a A$100m ($75.5m) tap to its August 2026 Kangaroo bond on Monday, before following up with its first Mexican peso trade since the US election.

Donald Trump’s shock victory in the US presidential elections was no obstacle to Santander’s Chilean arm this week as the bank became the first issuer from the South American country to raise financing in Taiwan’s Formosa market, as well as pocketing Sfr125m ($125m) from a clutch of Swiss investors.

Central American development bank Cabei will look to price its first Australian dollar bond on Thursday after announcing price guidance of 180bp over ASW for a proposed 10 year deal.

Gazprom has mandated Deutsche Bank, Gazprombank, UBS and VTB Capital to act as joint lead managers for a Swiss franc bond set to come to market later this month.

Banco Santander Chile has responded to a reverse enquiry by printing a Sfr125m ($125m) May 2025 bond. Riding off Chilean reputation in the Swiss market, and a scarcity of LatAm offerings this year, the lead managers kept the tickets tightly priced.

Diesel engine maker Weichai Power has approached the loan market for a €310m ($334m) five year borrowing via ANZ.

The European Investment Bank added a A$100m ($75.5m) tap to its August 2026 Kangaroo bond on Monday.

European public sector issuers are gearing up for another year of potential political turbulence, with the trend for pollsters to fail to call results — as seen with the election of US president-elect Donald Trump and Brexit — likely to make issuance planning more difficult. That outlook is likely to force a more dovish approach from the European Central Bank at its last governing council meeting of the year in December, said bankers.