LGFVs return to offshore market

摘要

Offshore bond supply from Chinese local government financing vehicles has picked up in the past two months and is expected to continue growing in coming months as funding costs in the offshore and onshore markets converge. According to IFR data, offshore LGFV bond supply reached US$4.5bn in March-April, up from US$1.3bn in January-February. Funding costs for offshore LGFV bonds have declined significantly since the start of the year, with some names able to achieve yields of around 4.5%-4.6%, said David Yim, regional head of capital markets for Greater China and North Asia at Standard Chartered.