Northeast Asia

The World Bank has mandated banks for its landmark Special Drawing Rights (SDR) bond with market participants expecting a strong response from onshore Chinese investors.

Everbright Securities has priced its Hong Kong IPO in the upper half of the marketing range, raising HK$8.62bn ($1.11bn).

Samsung BioLogics has filed a draft prospectus with the Korea Exchange for an IPO it is planning later this year — the float could raise W3tr ($2.7bn), according to a source familiar with the matter.

Home building materials maker China Lesso Group Holdings signed its syndicated loan at $600m, twice the launch size, on Thursday.

In this round-up, Hong Kong sees further drops in its RMB deposits base in June, new RMB futures contracts on the Hong Kong Exchange (HKEX) reach trading records in early August, and a Chinese regulator sets up a working group to prepare for the Shenzhen Connect launch. Plus, a recap of GlobalRMB's top stories this week.

Citi’s Kenneth Leung will take on an expanded role as head China-focused financial sponsor coverage after Victor Yuan returns to the US, according to a memo seen by GlobalCapital Asia.

HNA Group has sealed its return to the offshore debt market as yield-starved investors nudged the unrated issuer to open a new three year trade. While the order book is not big compared with other recently deals, the issuer was still able price tightly.

With the World Bank set to issue a ground-breaking bond denominated in IMF special drawing rights (SDR) in China this month, markets are starting to take a closer look at what the odds are for the SDR to pull off its transition to a real-world financial instrument.

It has been one year since China shocked the world with a new methodology for generating its official daily USD/CNY fix that caused a sharp fall in the currency. Market participants told GlobalRMB that the new regime is a step up from the old system, but while more near-term reforms are unlikely, they are bracing for even more volatility.

Everbright Securities braved the summer slowdown this week to seal Hong Kong’s fourth $1bn-plus IPO of 2016. Investors turned up for the deal, but to secure its success Everbright followed its peers in placing a large chunk of the float with cornerstone investors. Although eye-catching, the move did not dampen demand, with orders covering the book throughout its pricing range. Jonathan Breen and John Loh report.

China Construction Bank’s Singapore branch is set to price the first offshore renminbi (CNH) bond in over a month, after opening books for a two year trade.

China Universal Leasing is seeking Rmb1bn ($150.5m) onshore, with two mandated lead arrangers and bookrunners distributing the deal on a best efforts basis.