LGFVs target more capital via bond issues

Offshore markets emerging as top choice for financing of utility projects

Bond issuance by local government financing vehicles (LGFVs) is likely to rebound in the offshore market next year; in fact, a number of them are already waiting in line, seeking regulator's approval, according to analysts.

After witnessing a sharp decline this year amid the tightened grip to rein in local government financing risks, some municipal construction investment companies are likely to regain their appetite to issue bonds overseas in 2018, according to Ivan Chung, head of Moody's China Credit Research and Analysis.