Euro

Rating: AA/AA

Export-Import Bank of China hit the debt market on Wednesday, bagging €2bn (US$2.1bn) in the largest euro deal from a Chinese borrower to date. While DCM bankers say that there’s little opportunity for arbitrage, Chexim benefited by reaching new investors. Morgan Davis reports.

Chinese issuers stormed the primary debt market on Wednesday with Export-Import Bank of China, China Aluminum International Engineering Corp (Chalieco) and Changsha Pilot Investment Holdings Co among the borrowers attracting bids.

The euro market for public sector borrowers repoened on Tuesday as a pair of issuers took advantage of calmer conditions since the US election on November 8 to raise nearly €2bn in total — both paying small new issue premiums.

The Asian debt market stepped up a gear Tuesday with a number of new launches and mandates, as issuers navigate the volatility and try to wrap up their fundraisings before key holidays and the end of the year.

Agence Française de Développement on Monday mandated banks for what is set to be the first euro benchmark from a public sector borrower in nearly a month.

The European Commission will propose on Tuesday a package of measures to make the reporting and disclosure requirements for banks more 'proportional', meaning easier for smaller institutions to comply with the rules.

The European Commission unveiled a major legislative package on Wednesday, transposing several Basel standards into EU law, including total loss-absorbing capacity (TLAC) rules, the leverage ratio, the net stable funding ratio and trading book rules.

Portugal is set to round off its funding for the year by auctioning €500m-€750m of its April 2021 line on Wednesday.

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.

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.

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