China raises $6 billion through bond sale

All the bonds were priced above the benchmark US Treasuries. After the market rally has driven the global bond yields sharply lower, the deal has been made post this scenario. This has significantly decreased the cost of financing compared with its previous dollar issuance in October last year.

According to Refinitiv capital markets news service IFR, the $6 billion total was roughly double the original target and order books for the bonds had been over $20 billion earlier in the day.

The head of China onshore debt capital markets at Deutsche Bank, Sam Fischer said that “This has been the largest Reg-S offering by an Asian sovereign issuer to date,”. The finance ministry is positive that the move would help it improve its bond yield curve.

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