Favourable conditions in the debt market in recent weeks have prompted a revival in the popularity of bond issues. Among the companies tapping the debt market is Panva Gas Holdings, which has mandated Morgan Stanley and Merrill Lynch to organise a bond offering. Asian debt markets newsletter basis point reports that the bond issue will be worth between US$200 million and $300 million, which the company plans to use for working capital. Growth Enterprise Market-listed Panva Gas needs cash to fund an aggressive expansion into the mainland, where demand for piped natural gas is fuelled by government policy initiatives to reduce emissions of carbon dioxide and other pollutants. The managing director of Panva Gas, Wayne Chen Wei, has indicated that the company wants to strengthen its war chest for acquisitions in provincial cities such as central and eastern China. The firm raised US$50 million through a convertible bond in April last year and HK$620 million from a top-up placement in December. Meanwhile, Hong Kong-listed Industrial and Commercial Bank of China (Asia) plans to revive its delayed US$300 million bond issue early next month, sources say. The offering was originally scheduled for early last month but was delayed due to 'technical reasons'. Observers say the rescheduling was made in light of relatively light trading during the summer holidays. It also made sense to wait until after the release last week of the bank's interim results, which were very strong. The bank posted a 54 per cent year-on-year gain in net profit to HK$357.57 million for the first half, shrugging off losses from its insurance division as the quality of its loan book improved. Goldman Sachs, HSBC and JP Morgan are arranging the issue.