This is in keeping with broader efforts to disentangle LGREs from public-sector balance sheets and contain risks associated with cross-border bonds. Under our ratings approach, we expect support for larger LGREs, especially those with a significant policy role, but not necessarily for smaller, less-important LGREs.
Regulators have also sought to reassure investors over the general quality of China's cross-border bond issuance, and continue to view favourably offshore issuance by large high-quality corporations with healthy risk management practices.
"Currently, a company wishing to issue cross-border bonds in the ASEAN+3 is faced with diversity in rules, regulations and practices, and may incur substantial cost in simply trying to understand the regulations and processes of each country," SEC said in a statement.
The Securities and Exchange Commission (SEC) is pushing for a regional bond issuance framework that would facilitate cross-border bond issuances within the ASEAN+3 participating economies.
If we looked solely at the number of companies that issue foreign-currency or cross-border bonds
, then the degree of concentration would be dramatically higher," says Acres.
The issuance of cross-border bonds to both public and private institutional investors allowed Enoch Cree Nation and River Cree Enterprises LP to buy out Paragon Gaming's minority shares.
RCE is the first solely-owned First Nations on-reserve business to issue cross-border bonds.
CSN has adopted a more credit oriented financial strategy, seeking to improve its capital structure through non-core asset sales, and successful refinancing of its cross-border bonds
due to 2019 and 2020.
CSN completed the refinancing of the debt with Banco do Brasil (BRL5 billion) and raised USD350 million in cross-border bonds, which was lower than the expected USD750 million.
-- Unsuccessful refinancing of cross-border bonds before mid-2019 in the medium term;