Greater China

Two entities of China’s Chonqing municipality — the Nan’an district financing vehicle and the Chonqing Grain Group — have mandated banks for potential deals while Huai’an’s local government financing vehicle is also seeking a new bond.

Bank of China is planning to issue a multi-currency international green bond, in what will be China’s second offshore financial green offering.

China-based EC World Real Estate Investment Trust has fixed the price range for its Singapore IPO to raise as much as S$365.97m ($272.7m), according to a draft prospectus filed with the city-state’s regulator.

Home building materials maker China Lesso Group has approached the loan market for a $300m borrowing, some two years after sealing its debut syndicated facility.

Chinese tutoring service provider TAL Education has raised $400m from its maiden syndicated loan, doubling the deal from the launch size of $200m after receiving ample support from domestic banks.

CNY swaps have been bid on firmer data and the view that rates are too low. 5-year paying interest has been evident and the 1s/5s NDIRS curve slope is considered too flat. Meanwhile, Bank of China is planning to issue Green bonds, writes Deirdre Yeung of Total Derivatives.

Yihai International Holding launched its Hong Kong IPO last Thursday to raise HK$$889.2m ($114.6m), with the company choosing to go it alone without the aid of cornerstone investors.

It was high yield that sprung back to life in Asia this week, while investment grade counterparts remained on the sidelines amid a cautious environment. Market participants remain hopeful that the region’s high yield market will benefit from a possible Brexit-driven pivot from European investors, write Narae Kim and Max Bower.

The impact of the UK’s decision to abandon its European Union membership hit Asian equity capital markets with varying degrees of intensity this week, with some IPOs wobbling and others braving market jitters to launch deals. But orders have become smaller and there is a clear flight to safety among investors. Jonathan Breen and John Loh report.

China’s DFZQ, also known as Orient Securities Co, and China Development Bank Financial Leasing Co have raised a combined HK$14bn ($1.8bn) after pricing their IPOs towards the low end of guidance, according to sources close to the deals.

China is pushing on with the development of its non-performing loans securitization market, which only restarted last month, with China Merchants Bank (CMB) sealing the asset class’s third transaction.

The loans team at Standard Chartered in Hong Kong has undergone a number of changes, with new bankers coming into the fold to replace those who have left recently.