HONG KONG, Nov 10 (Businesshala) – China on Wednesday issued a three-tranche euro-denominated bond in its second major foreign exchange transaction in over a month, according to a term sheet reviewed by Businesshala.
The country’s finance ministry said on October 29 that the deal would increase to 4 billion euros ($4.6 billion) and the loan would be issued in three, seven and 12-year tranches.
Initial pricing guidance for investors has been set in the mid swap rate plus 20 basis points area for 3-year deal, 40 basis points area for 7 year and 65 basis points area for 12-year tranche, on the term sheet. Has shown.
Beijing has said that issuing offshore sovereign bonds could help create a price benchmark for Chinese corporate bond issuance overseas, and help China more closely integrate into the global financial system.
The sale of euro bonds follows China’s announcement on October 20 that it had successfully completed the issuance of US dollar denominated bonds worth $4 billion. ($1 = 0.8655 euros) (Reporting by Scott Murdoch in Hong Kong and Samuel Shen in Shanghai; Editing by Richard Pullin)