The sovereign bond issuance was highly appraised by international investors. On the pricing day, the issuance was announced with initial price guidance of MS+45bps area for the 5-year tranche, MS+70bps area for the 10-year tranche, and MS+90bps area for the 15-year tranche; all tranches attracted a significant number of high-quality international investment institutions, reaching over 4.5 times oversubscription and with the orderbook above EUR17.8bn at its peak. Thanks to the strong orderbook momentum, the final prices for the 3 tranches were tightened to MS+30bps, MS+55bps and MS+70bps, respectively. The resulting allocation went to a diversified types of investors participated in the offering, including central banks, sovereign funds, super-sovereign funds, pension funds, asset managers and banks. European investors accounted for 72% of the final allocation, demonstrating the strong confidence and support of the international capital market in the stable growth of China's economy.
This is the second euro-denominated sovereign bond issued by the Chinese government after the re-launch of the bond issuances back in 2019. It showcases tremendous resilience of China’s economy under the impact of the pandemic to the international capital market, and conveys China’s confidence in all-round and high-level opening-up, which is of great and far-reaching significance to further deepen China’s integration into the international market. The sovereign bond issuance improves China’s foreign currency-denominated treasury yield curve, further benefits other Chinese issuers to benchmark their Euro-denominated bond financing levels in the future, and provides a great opportunity to benefit from China's development achievements and disseminating China's development experience across the world.
CICC is the only Chinese investment bank who participated in the all the landmark transactions since 2017. Following the sovereign bond issuance of USD2.0bn in 2017, the issuance of USD 3.0bn in 2018, the issuance of EUR4.0bn and USD6.0bn in 2019, this is the sixth foreign currency-denominated sovereign bond issuance executed by CICC as Lead Manager and Bookrunner for four years in a row, demonstrating its exceptionally dominating market position and recognition in the international debt capital market.
