Reuters: US Dollar Report: CNH Tracker-Foreign issuers revive dim sum market after summer lull

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CNH Tracker-Foreign issuers revive dim sum market after summer lull Oct 3rd 2013, 04:24 Tweet Share this Email Print Related Topics Stocks » Currencies » Bonds News » Bonds » Markets » Financials » Thu Oct 3, 2013 12:24am EDT By Michelle Chen HONG KONG, Oct 3 (Reuters) - A quiet offshore yuan bond market is being gradually revived by foreign issuers after a long summer lull, with energy giant BP this week becoming the latest company to tap the market with a benchmark-size offering. Strong demand for the third dim sum issue by a foreign corporate in the last month bodes well for the pipeline from multinational entities that either use the proceeds to fund operations in China or make use of currency swaps for cheaper funding. BP Capital Markets, a funding arm of BP, returned to the dim sum market on Wednesday by selling a 1.2 billion yuan ($196 million) five-year bond, which was eventually priced at 3.95 percent, about 30 pips lower than the initial guidance. The bond was more than four times oversubscribed, with fund managers taking up the lion's share of the issue, followed by banks and private banks, bankers with direct knowledge of the deal said. Investors are hungry for dim sum bonds with good ratings and attractive yields, especially after a dearth of issues in July and August that saw issuance fell to the lowest level in three years. "BP's dim sum bond is attractive given its relative value. A single A issue with an almost 4 percent return sounds a good deal to us," said a fund manager in Hong Kong. French Total Capital and South Korean SK Global sold their dim sum bonds in September, which were also well received and raised a combined 2.015 billion yuan. However, issues from Chinese names remain subdued.RECENT STORIES: CNH Tracker-Fears of cash squeeze in yuan market ease as long holiday looms More stories about the CNH market Daily onshore yuan reports Daily China money market reports Offshore yuan rate Onshore yuan rate Offshore yuan dealt Onshore yuan on CFETS THOMSON REUTERS SPEED GUIDES Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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