China's ambitions spread to remote bond markets
Involvement of its banks in frontier-bond underwriting comes as Beijing ramps up its Belt and Road Initiative
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CHINESE economic diplomacy is spurring a shake-up in the world of frontier-bond underwriting. When the tiny island nation of the Maldives prepared to make its dollar-debt debut last week, it looked beyond more veteran international arrangers to Bocom International Holdings Co, the securities arm of China's fifth-biggest bank. The firm was sole lead on the US$200 million, five-year bond, the latest in a slew of frontier-market dollar offerings this year.
Chinese banks also popped up in Sri Lanka's blowout dollar-bond sale last month, with Citic Securities Co and ICBC International Securities Ltd - a unit of the world's largest lender by assets - part of a syndicate marketing the US$1.5 billion issue. Their involvement comes as China ramps up its Belt and Road Initiative, with almost US$80 billion in financing to be doled out to developing nations participating in President Xi Jinping's globalisation push.
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