03-10-2014, 10:06 AM
We do see bond listing has been increased both in number and value, base on SGX numbers...
Both offshore bonds and loans are popular means for Chinese companies for capital funding...
(vested)
Chinese tap Singapore wealthy in record bond sales
Singapore’s bond market is getting a boost from Chinese borrowers tapping the island’s millionaires for record amounts at rates almost 30% cheaper than home.
Private investors in Singapore took almost all of the $380 million of local dollar-denominated notes sold by mainland Chinese companies excluding banks last month, according to people familiar with the matter. Offerings in the currency by all Chinese borrowers rose to S$1.7 billion this year, almost double such sales for the whole of 2013, according to data compiled by Bloomberg.
China’s issuers are increasingly targeting Singapore’s surging millionaire base to raise funds amid record borrowing costs at home. Debut issues from offshore companies rose to 10 in 2014 compared with none five years ago, supporting a market that makes up just 20% of bond sales in the Asean region compared with about 32% each for Thailand and Malaysia.
“The future growth of Singapore’s bond market is dependent on making itself relevant to offshore issuers and investors, over and above the domestic market,” Clifford Lee, Singapore- based head of fixed income at DBS Group Holdings Ltd., the island’s top bond arranger, said in an interview. “It’s natural for Chinese issuers to sell Singapore dollar bonds as they continue to grow, as there’s the appeal of further diversification in an open and transparent capital market.”
Slowing China
Yields on yuan-denominated bonds are averaging at a record high of 5.87% this year, according to a Bank of America Merrill Lynch index, as China faces its slowest growth since 1990, plummeting deposits and rising soured debt amid a property slump. The average coupon on Singapore-dollar bonds in the same period is 4.16%, Bloomberg-compiled data show.
...
http://www.theedgesingapore.com/the-dail...sales.html
Both offshore bonds and loans are popular means for Chinese companies for capital funding...
(vested)
Chinese tap Singapore wealthy in record bond sales
Singapore’s bond market is getting a boost from Chinese borrowers tapping the island’s millionaires for record amounts at rates almost 30% cheaper than home.
Private investors in Singapore took almost all of the $380 million of local dollar-denominated notes sold by mainland Chinese companies excluding banks last month, according to people familiar with the matter. Offerings in the currency by all Chinese borrowers rose to S$1.7 billion this year, almost double such sales for the whole of 2013, according to data compiled by Bloomberg.
China’s issuers are increasingly targeting Singapore’s surging millionaire base to raise funds amid record borrowing costs at home. Debut issues from offshore companies rose to 10 in 2014 compared with none five years ago, supporting a market that makes up just 20% of bond sales in the Asean region compared with about 32% each for Thailand and Malaysia.
“The future growth of Singapore’s bond market is dependent on making itself relevant to offshore issuers and investors, over and above the domestic market,” Clifford Lee, Singapore- based head of fixed income at DBS Group Holdings Ltd., the island’s top bond arranger, said in an interview. “It’s natural for Chinese issuers to sell Singapore dollar bonds as they continue to grow, as there’s the appeal of further diversification in an open and transparent capital market.”
Slowing China
Yields on yuan-denominated bonds are averaging at a record high of 5.87% this year, according to a Bank of America Merrill Lynch index, as China faces its slowest growth since 1990, plummeting deposits and rising soured debt amid a property slump. The average coupon on Singapore-dollar bonds in the same period is 4.16%, Bloomberg-compiled data show.
...
http://www.theedgesingapore.com/the-dail...sales.html