The Ministry of Finance of the People's Republic of China, acting on behalf of the central government, completed the issuance of EUR5 billion sovereign bonds on June 25 in Luxembourg.
The bonds were offered in three maturities: a 5-year tranche of EUR2.5 billion with a coupon of 2.768%, an 8-year tranche of EUR1.5 billion with a coupon of 2.966%, and a 12-year tranche of EUR1 billion with a coupon of 3.212%.
International investors responded strongly, with total subscriptions reaching EUR24.8 billion, nearly five times the issuance amount.
Geographically, investors from Asia, Europe, the Middle East, and U.S. offshore accounted for 51%, 28%, 18%, and 3% of subscriptions, respectively. By investor type, banks made up 57%, sovereign wealth funds and central banks 24%, fund managers 17%, and dealers 2%.
All bonds from this issuance will be held in the Hong Kong Monetary Authority's Central Moneymarkets Unit (CMU) and are scheduled to list on both the Hong Kong Stock Exchange and the Luxembourg Stock Exchange.