China Sovereign and SK Corp set to launch bonds

The Chinese government is to start roadshows on Monday for its latest bond deal. The bond will comprise $1 billion of 10-year paper and $500 million equivalent of 10-year, euro-denominated paper. The lead managers of the deal are Goldman Sachs, JPMorgan and Morgan Stanley. Sources say that the deal will be heavily targeted at European investors. Bankers feel that the current high tensions between the US and China could have adversely affected a US centred deal. So the structure and tenor of this issue is likely to be more European in style than anything the Chinese issuer has ever done.