Chinese duo tap dollar debt market despite distraction

As President Xi Jinping gives his keynote speech in Beijing, Tewoo Group and Maoye International issue short-dated debt, exploiting a loophole to tap international markets.

Two small Chinese companies joined a recent rush of short-term borrowings, shrugging off political distractions to raise a combined $800 million in bond issues.

Commodity trader Tewoo raised $500 million and department store operator Maoye International brought in $300 million, with both notes maturing within a year a legal way to bypass the regulatory approval process set by the National Development and Reform Commission, the watchdog for overseas debt issuance.

We don't see the regulators shutting the door on issuers who are looking to issue short-dated debt,  a Chinese debt banker with a US investment bank said.

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¬ Haymarket Media Limited. All rights reserved.

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