In a market accustomed to a very slow pace of change, July was a remarkable month in the development of an offshore renminbi centre in Hong Kong. Hong Kong-listed Hopewell Highway Infrastructure kicked off the month with the first-ever renminbi-denominated bond from a foreign corporate issuer. The groundbreaking two-year offer, launched at Rmb1bn (US$147m), was eventually increased in size to Rmb1.38bn, thanks to orders worth a total of Rmb2.19bn from enthusiastic investors. “The issuance not on

The Samurai market has always been a reluctant supporter of Asian issuers, preferring Triple A rated supranationals to regional leaders. Appetite started to pick up earlier in the year as conservative Japanese investors began showing interest in slightly higher yields, but fears of a European sovereign debt crisis turned the tide against foreign borrowers. Overall Samurai issuance, from the start of the year to July 16, stood at ¥860bn (US$8.77bn) involving 31 separate issues, slightly ahead of

Australiaemerged from the global financial crisis in a much stronger position than its developed market peers. That resilience was mirrored in the local debt markets, and local bond volumes quickly surpassed those of 2008. According to Thomson Reuters data, the local Australian bond markets (excluding Kangaroo bonds) recorded US$76.5bn-equivalent from 131 deals in 2009, up from US$70.3bn-equivalent from 114 issues in 2008. The market has been growing rapidly, having posted volumes of US$34bn-equ

Malaysiaalready accounts for more than 60% of world’s US$130bn Islamic bond market and it is not about to give up its leading position without a fight. This year, two key Sharia-compliant deals caught the attention of Middle Eastern buyers, cementing Malaysia’s reputation as the Asian hub for Islamic finance. The said two deals are the government’s overwhelmingly popular US$1.25bn sovereign sukuk and Nomura’s landmark US$100m issue on Bursa Malaysia. Malaysia’s success at attracting Gulf Coopera

The Asian Development Bank reckons total debt outstanding in Asia’s fragmented domestic bond markets more than doubled from 2005 to 2009 to over US$4.4trn. This year will only add to that total: governments in the region have embarked on substantial borrowing programmes to pay for all their 2009 stimulus spending; domestic banks are raising debt to keep pace with lending growth and selling subordinated bonds to boost their capital adequacy ratios. Corporate issuance looks to be robust, too, with

Malaysiapicked its moment to launch a rare Islamic sovereign bond from Asia into the international capital markets in June. Dubai World’s freeze on debt repayment, including Islamic sukuk, was only a few months in the past, and Greece had just been on the verge of default before an EU bailout soothed the short-term panic down to a more manageable longer-term worry. Malaysia neither needed the money, nor did it care too much about getting the last basis point. However, it wanted to make a point a

Chinese property companies dominated Asia’s high-yield market in the first half of 2010, as onshore borrowing restrictions triggered an offshore funding spree. Numerous deals were priced in a matter of weeks, before confidence evaporated and prices tumbled by 8–10 points. As that sector waits to recover, the outlook for Asian high-yield is far from certain.  The second quarter of 2010 was a record-breaker for Asian high-yield, with US$3.7bn of deals printing in Asia, outside of Australia and Jap

Asia’s debt capital markets enjoyed an impressive rebound in 2009 and continued to build on those foundations in the first half of 2010. Asian sovereigns remain popular international issuers even during a period of renewed turmoil in the European public sector, while global investors have again warmed to Asian high-yield bonds, welcoming a number of deals from the crowded Chinese property market. Still, international issuances have slowed since the Greek bailout in early May, and investors have