CICC Facilitates the Successful Completion of MoF’s EUR 4.0 Billion Sovereign Bond Issuance

On November 5th, 2019, China International Capital Corporation (“CICC”), as Lead Manager and Bookrunner, assist China’s Ministry of Finance (“MoF”) to complete a landmark issuance of EUR 4.0 billion sovereign bond in Paris. The total bond offering consists of EUR 2.0 billion with a yield of 0.197% in 7-years, EUR 1.0 billion with a yield of 0.618% in 12-years and EUR 1.0 billion with a yield of 1.078% in 20-years. The issuance is dual listed in London Stock Exchange International Securities Market and Euronext Access Paris.

This sovereign bond issuance was highly appraised by international investors. On the pricing day, three tranches was announced with initial price guidance of MS7+45-50bps, MS12+60-65bps and MS20+75-80bps, which attracted orders from many central banks, sovereign funds and other quality international investors which led to a strong orderbook of over EUR 20 billion, realizing a 5-times oversubscription volume. The final price for the 7-years tranche was tightened to MS+30; the 12-years tranche was tightened to MS+40; the 20-years tranche was tightened to MS+58. The final allocation had a diversified investor portfolio with wide geographical distributions; the European investors account for 57% of the total.

This is China’s first euro sovereign bond issuance in the past 15 years, and also Chin’s largest issuance size of foreign currency denominated sovereign bond. This issuance symbolizes China’s willingness and determination to boost confidence in China’s Opening-Up to the global; this further deepens China’s connection to the international capital markets. The reignite of using euro financing channels improve China’s foreign treasury yield curve, and further benefits other Chinese issuers to benchmark their financing levels in the future. 

CICC, as the only Chinese investment bank to participate in the deal, was honored to have given full access and responsibilities during the preparation stage in this symbolic landmark transaction. Continuing the past sovereign bond issuances of USD 2.0 billion in 2017 and the issuance of USD 3.0 billion in 2018, this is the third consecutive time that CICC has acted as Lead Manager and Bookrunner to work for MoF’s international sovereign bond issuances, showing our exceptionally dominating position in the international debt capital market. “People-oriented with nation in mind”, “Chinese roots and international reach”, CICC is faithful to serve our values and principals, and will continue to provide all-around financial services for the sustainable development of the Chinese economy and financial market.