Sovereign Debt

China finds support in Europe

Only a month after its US dollar bond deal, China finds significant demand from European investors, who are also confident about the country's post-Covid economic rebound.

Just a month after the People’s Republic of China returned to the 144a bond market after a 16-year absence, it printed the year’s largest euro-denominated sovereign bond from the region with a 4 billion $4.7 billion three-tranche deal.

The country’s second euro issue in two years, coming after an absence of 15 years, saw significant demand last week. Books were covered almost four times particularly from European accounts which allowed China to reprice its bond yield curve and see, for the first time from the sovereign, a negative yield.

“This is the second consecutive year that the Ministry of Finance MoF has issued euro bonds since...

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