BEIJING - The Ministry of Finance of the People's Republic of China has successfully completed the issuance of a USD 2 billion bond, which was divided into two tranches: USD 1.25 billion at 4.125% with a 3-year maturity and USD 750 million at 4.250% with a 5-year maturity. The securities, listed under ISIN codes USY15025AE24 / US16955EAE05 for the 2027 maturity and USY15025AF98 / US16955EAF79 for the 2029 maturity, were priced at 99.557% and 99.599% respectively.
The issue, which took place on November 13, 2024, saw a spread over the benchmark of T 4.125% 11/15/27 + 1bps for the 3-year bonds and T 4.125% 10/31/29 + 3 bps for the 5-year bonds. Deutsche Bank AG (NYSE:DB), London Branch, acted as the stabilizing manager for the offering, alongside a consortium of international banks including Bank of China Limited, Bank of Communications Co., Ltd. Hong Kong Branch, ABCI Capital Limited, Merrill Lynch (Asia Pacific) Limited, and several others.
No stabilisation actions were taken by the stabilizing managers following the bond issue, as per the post-stabilisation period announcement. The announcement clarified that the securities have not been registered under the United States Securities Act of 1933 and, as such, may not be offered or sold within the United States absent registration or an exemption from registration. There has been no public offer of the securities in the United States.
This bond issue is part of China's ongoing efforts to tap into the international capital markets and diversify its financing sources. The successful placement of these bonds indicates investor confidence in the country's economic stability and creditworthiness.
The information for this report is based on a press release statement and is intended for informational purposes only, not constituting an offer to underwrite or acquire securities in any jurisdiction.
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