Dim sum keeps going even as dollar bonds stall

While the G3 bond market has been shut for almost two weeks, issuance in the dim sum bond market has continued to flourish. A handful of issuers such as Beijing Enterprises Water and China Merchant Holdings are meeting investors this week, and New Zealand dairy giant Fonterra closed a small Rmb300 million $46 million dim sum bond last week.

Since Kia Motors priced its $500 million bond on June 8, not a single Asian borrower has tapped the G3 market. Instead, a growing backlog of companies including NTPC, Kookmin Bank, Aegis, Bharti Airtel, Korea South East Power, CLP Power and Aluco have concluded roadshows without launching deals. Issuers faced...