China has mandated a dozen banks for a planned 4 billion euro ($4.62 billion), euro-denominated sovereign bond sale in Hong Kong, two weeks after the country raised $4 billion through a US dollar bond sale that drew robust demand.
The Ministry of Finance has hired Bank of China, Bank of Communications and China International Capital Corporation for the latest issuance.
The other banks mandated are Bank of America, Crédit Agricole, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Société Générale, Standard Chartered and UBS. The term sheet said the issuance is subject to market conditions.
The ministry announced on October 29 that it will issue the three-year, seven-year and 12-year euro bonds in Hong Kong, worth a combined 4 billion euros, on November 10.
China conducted similar bond sales last year and in 2019, when Beijing sold its first euro-denominated government debt in 15 years.
Beijing has said issuing sovereign bonds offshore can help build a price benchmark for Chinese corporate bond issuance overseas, and help China integrate more closely into the global financial system.
Launching sovereign bond sales in Hong Kong could also strengthen the city’s global financial centre status.
The proposed euro bond sale follows China’s announcement on October 20 it had successfully completed the issuance of $4 billion worth of sovereign bonds in Hong Kong
- Reuters with additional editing by Jim Pollard
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