Oceania

The Reserve Bank of New Zealand has unveiled the latest plank of its highly unusual approach to bank capital regulation. Under the proposed changes, the four large subsidiaries of Australian banks that operate in the country will have to raise billions of tier one capital and will be able to rely on loss-absorbing debt instruments far less than peers in other jurisdictions.

Papua New Guinea is hoping to build on the momentum of its long-awaited international bond debut by kick-starting a domestic corporate bond market.

In this round-up, China International Capital Corporation UK (CICC UK) became Stock Connect’s first depository receipt conversion institution, S&P and FTSE Russell added China A-shares to their indices, and October capital outflows from China jumped while outflows from other emerging markets stayed flat.

Australian coal producer Yancoal has raised HK$1.61bn ($206m) from its Hong Kong IPO after pricing it at the bottom of guidance.

The International Swaps and Derivatives Association on Tuesday said the derivatives industry seemed to have broadly agreed on a method of calculating replacement rates, known as fallback rates, for interbank offered rates (Ibors), in case those rates stop being calculated.

National Australia Bank (NAB) was looking for execution certainty when heading to the dollar market to sell a pair of senior unsecured and covered bonds on Monday. But with credit conditions improving on Tuesday, Westpac shaved a few basis points off the cost of funding compared with its peer by opting for euros in covered and senior formats.

ANZ is relocating a senior leveraged and acquisition finance banker and former head of Asia loan syndications from Singapore to Sydney.

With covered bond spreads likely to go wider, ANZ’s decision to take as much size from the market as possible was logical. The short and rare four year tenor was instrumental in boosting appeal for the bond issue, but it also helped that the issuer took the trouble to engage with investors with a roadshow beforehand.

Coal producer Yancoal will start bookbuilding early next week for a Hong Kong IPO, making it the first Australian-listed company to have a dual listing in Hong Kong, according to a banker close to the deal.

In this round-up, wealthy Chinese individual investors now have access to local government bonds, Russian and Chinese leaders in the financial industry are meeting to strengthen mutual market access, and northbound trading volume via Stock Connect reached Rmb8.77tn.

In this round-up, Chinese president Xi Jinping promises more support for the private sector, Australia’s state of Victoria becomes the first in the country to support the Belt and Road Initiative (BRI), and Xi and US president Donald Trump discuss trade on a phone call ahead of their meeting at the G20 later this month.

China Merchants Loscam has closed a $302m dual-currency club loan, making a comeback to the offshore market after a five-year absence.