China's move to devalue its currency on Tuesday is expected to heap even more pressure on high-yield bond issuance in offshore currencies by Asian companies, which has already slumped more than a third this year on the back of falling commodities prices, a contracting Chinese property sector, and currency weakness in Indonesia.

China's central bank on August 11 moved to devalue the tightly-controlled yuan, in a development that bankers said would make it cheaper for Chinese companies to borrow onshore, putting even more pressure on offshore issuance in so-called G3 currencies - debt denominated in Japanese yen, US dollars or euros.