China issues 4 billion euros of sovereign bonds in Paris with a total purchase amount of more than 20 billion euros
On November 5, Paris time, the Ministry of Finance of the people's Republic of China successfully issued 4 billion euros of sovereign bonds in Paris, France. Of this total, the seven-year period is 2 billion euros, the issuing interest rate is 0.1977%, the 12-year 1 billion euros, the issuing rate is 0.618%, and the 20-year 1 billion euros, the issuing rate is 1.078%. International investors subscribed enthusiastically, with a total purchase amount of more than 20 billion euros, five times the amount issued, of which 57 per cent of the funds came from Europe and 43 per cent from outside Europe. The results of the release were better than expected. The bond will then be listed on Euronext and the London Stock Exchange.
It is understood that this is the first time that the Chinese government has issued euro sovereign bonds in 15 years. It is the largest single issue of foreign currency sovereign bonds by the Chinese government so far, and it is also the first Chinese sovereign bond to be issued and listed in France. It conveys the message of China's omni-directional high level of opening up to the international market, especially to European investors, which is of great and far-reaching significance to further promote China's in-depth integration into the international financial market.
The successful issuance of euro sovereign bonds marks the resumption of the euro financing channel on the basis of the issuance of US dollar sovereign bonds by the Chinese government for two consecutive years, which is conducive to enriching and perfecting the yield curve of sovereign bonds outside China. The purpose of this paper is to provide a market reference benchmark for euro financing of Chinese issuers.
On the occasion of the 55th anniversary of the establishment of diplomatic relations between China and France, the issuance of Chinese sovereign bonds in Paris reflects China's importance to the European financial market and will further strengthen economic and financial cooperation between China and France. Building a more solid, stable and dynamic comprehensive strategic partnership will help further deepen economic and trade cooperation between China and France and even between China and the European Union. (reporter Dong Bijuan)