Greater China

The World Bank is preparing to sell the first bond dominated in the IMF special drawing rights (SDR) unit of account, according to market sources.

Fosun International-backed insurer Ironshore is looking to raise some $100m via a US listing in a trade to feature only secondary shares, according to a filing with the US Securities and Exchange Commission.

Improved liquidity conditions have offset the weak yuan to support the short-end of the CNY curve while currency-related export optimism supports paying in the longer tenors. Sources expect further steepening from current levels, writes Deirdre Yeung of Total Derivatives.

Pirelli’s €4.8bn refinancing loan has found strong demand, as roughly 20 banks will join it, and it was well oversubscribed. Some banks declined to participate, however, and one banker said the borrower was "taking the mickey" with the terms of the deal.

In this round-up, China eases rules on foreign investment in the free trade zones (FTZ) and OTC Clear receives approval to clear CNH cross currency swaps (CCS). Plus, a recap of GlobalRMB’s top stories this week.

Real estate developer Greenland Hong Kong sold a highly popular bond on Thursday, in a move that highlighted investors’ lack of concern about the issuer’s high leverage.

China Railway Group raised $500m effortlessly from its first dollar bond in more than two years, taking advantage of its link to the central government and an issuer-friendly environment to price the new note through its existing curve.

KWG Property Holding sealed its third appearance in the onshore bond market this year with a Rmb2bn ($299m) private placement on Thursday. But unlike its previous deals, which were sold by its onshore subsidiary, the latest offering was a direct issuance from the Cayman Islands-incorporated firm.

In the immediate aftermath of the Brexit vote, London’s loss of its status as leading RMB hub in Europe seemed highly likely, a turn of events that left China and the UK to figure out how to move forward from the “golden era” they had on just ushered in. But a more nuanced picture is now starting to emerge.

Rating agency Standard & Poor’s said this week that global credit markets are poised either for a "slow burn" of deteriorating market conditions or something even worse: a credit exit, or "Crexit" — where a major economic or political shock triggers a shutdown of global markets altogether.

VPBank Finance, the consumer finance arm of state-owned Vietnam Prosperity Bank, is accessing the debt market for a $100m loan backed by accounts receivable.

India’s Yes Bank is eyeing Taiwanese liquidity for a $100m term loan that comes with an undisclosed greenshoe option.