Chinese bond issuers target wealthy Singaporeans

Singapore's bond market is getting a boost from Chinese borrowers tapping the island state's millionaires for record amounts at rates almost 30 per cent cheaper than in China.

Private investors in Singapore took almost all of the S$380 million (HK$2.31 billion) of notes sold by Chinese companies excluding banks last month, sources said.

Offerings in the Singapore currency by all Chinese borrowers so far this year have risen to S$1.7 billion, almost double such sales for the whole of last year.

Chinese issuers are increasingly targeting Singapore's surging millionaire base to raise funds amid record borrowing costs at home.

Debut issues from offshore companies have risen to 10 this year compared with none five years ago, supporting a market that makes up just 20 per cent of bond sales in the Southeast Asian region, compared with about 32 per cent each for Thailand and Malaysia.

"The future growth of Singapore's bond market is dependent on making itself relevant to offshore issuers and investors, over and above the domestic market," said Clifford Lee, the head of fixed income at DBS, Singapore's top bond arranger.