China to issue U.S. Dollar bonds on Tuesday

26.11.2019 - Kulakov Vladimir
China to issue U.S. Dollar bonds on Tuesday

BEIJING- China will start issuing overseas dollar sovereign bonds on Tuesday and the expected size will surpass the $3 billion record last 2018, Chinese finance ministry official stated.

“The size of issuance will surpass that of previous years,” according to the official.

Chinese Finance ministry is yet to disclose further details about the implementation which will ameliorate China’s offshore bond yield curve, the official added.

In line, China’s government mandatorily commanded 13 banks to start the US dollar sovereign bond pact, its third application since the revival of its international debt issuance program two years ago.

The starting prices for the three-, five-, 10-, and 20-year tranches range from 60, 65, 70, and 75 basis points respectively and are higher than US Treasuries of the similar tenor.

This would be the third arrangement since 2017 when China started its first ever US dollar bond in 13 years. The 2017 transaction tallied a $2 billion increase while a separate deal made the following year hit another $3 billion.

Just last November, China sold its first euro-denominated bonds in 15 years raising $4.4 billion and financial analysts predicted that European markets are set to be the mainland’s source of funds in the coming years.  

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from or Market Solutions limited." Cookies notification: “We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Continue

Help with deposit?