Global Head, Capital Markets,
In the wake of the new administration in Washington and the rise of populism in Europe, there is an unmistakable sense that China is on its own on major global issues. On climate change, China is now the strongest proponent of the Paris Agreement. On trade, it has over 25 free trade agreements in place or being negotiated.
China is also leading the dialogue on development in emerging countries underpinned by the “One Belt One Road” (Obor) initiative.
Trade is the prize but infrastructure takes the front seat for now
Call for greater global capital participation
Debt financing is opportune
Global interest rates continue to be low on a historical basis. This makes raising long-term debt to finance long-term infrastructure projects especially opportune. A similar ethos is being debated in the US. If this takes off, investors will have a plethora of investment opportunities in the coming years to fund infrastructure projects across the globe. This might also spur a “crowding-out effect” where competition for funding will drive the best opportunities forward.
Hot on the radar in the Obor calendar is the highly anticipated One Belt One Road Summit in Beijing in May. About 20 countries across Asia, Europe, Africa and Latin America have to date confirmed they will attend – and attendance might possibly eclipse that at the G20 summit in Hangzhou last year. It would be extremely interesting to watch for any steer on developments around the financing of Obor projects, especially on capital markets.
Henrik Raber is the Global Head of Capital Markets at Standard Chartered Bank. He joined the Bank in July 2009 as Regional Head of Capital Markets for Europe, Africa and Americas, and took on the role of Global Head of Debt Capital Markets in March 2010 before assuming his current role in mid-August 2014. Prior to Standard Chartered, Mr Raber was with UBS Investment Bank, where he headed European Credit Flow Sales and Trading, which encompassed Investment Grade, High Yield and Loans. Before working at UBS, Mr Raber was with Lehman Brothers for eight years in Fixed Income credit trading and capital markets.
Euromoney and Standard Chartered will be running a series of webinars on debt capital markets. The first one will be on ‘Investing China: CGB futures and the Bond Connect’ on May 15. Find out more
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