China sells 4 bln euros in debt, first in 15 years

Credit: REUTERS/JASON LEE

China on Tuesday sold 4 billion euros in a three-part debt deal, its first re-issue of euro-denominated sovereign bonds in 15 years.

Nov 5 (Reuters) - China on Tuesday sold 4 billion euros in a three-part debt deal, its first re-issue of euro-denominated sovereign bonds in 15 years.

The deal sets a benchmark for Chinese issuers in the euro market, which could help steer corporate issuance away from dollar-denominated debt, at a time when China and the United States aim to defuse a 16-month-old trade war.

"The (Ministry of Finance) transaction attracted not only dedicated emerging market investors, but also European continental pension and insurance names which are welcoming new issuers in the market," said Sam Fischer, head of onshore debt capital markets at Deutsche Bank in Beijing.

"This demonstrates the depth of market demand for quality Asian issuers," he said.

The three-part deal consisted of 2 billion euros in 7-year notes priced at 99.5 to yield 0.197%, 1 billion in 12-year bonds priced at 98.639 to yield 0.618%, and 1 billion in 20-year bonds priced at 98.603 to yield 1.078%.

Bank of China, Bank of Communications, China International Capital Corp, BofA Securities, Citigroup, Commerzbank, Credit Agricole, Deutsche Bank, HSBC, Societe Generale, and Standard Chartered were the joint lead managers and book runners of the sale according to the pricing sheet.

The re-issue is the first since the issuance of 1 billion euros of sovereign bonds by the Ministry of Finance in 2004.

(Reporting by Yoruk Bahceli and Rodrigo Campos Editing by Leslie Adler)

((rodrigo.campos@reuters.com; @rodrigocampos; +1.646.223.6344; Reuters Messaging: rodrigo.campos.thomsonreuters.com@reuters.net))

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