CRCC returns with CNH-linked convertible

The US dollar has long been the currency of choice for Asian convertible bond issuers. But a spate of recent deals suggests the trend is changing. The most recent example is China Railway Construction Corp, which priced a Rmb3.45 billion $500 million renminbi-linked convertible bond late on Wednesday.

CRCC's bond sale was the third equity-linked issuance over the last five months where an issuer chose to avoid exposing itself to dollar volatility. It is not hard to see why as investors and issuers widely anticipate a rise in US interest rates, issuers are opting to avoid the currency as much as they can.

Hong Kong-listed Kunlun...