Tianjin Rail expands China's offshore muni debt

A new municipal-linked borrower makes its offshore debut with a popular deal.

Tianjin Rail Transit made its debut in the international bond markets on Wednesday, defying a tepid market environment to raise $500m from a dual-tranche deal.

Bankers hope the Reg S deal will encourage more of China’s municipal government-backed issuers into the offshore market.

The loss making company made its entrance on an ostensibly difficult day. Stock markets across Asia fell throughout Wednesday, and the iTraxx Asian investment grade index was trading slightly wider in the afternoon.

But with the aid of a local government guarantee, Tianjin Rail appeared insulated from the weak tone the company’s bankers managed to build an order book that stood...

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