BEIJING, Nov. 20 (Xinhua) -- China's Ministry of Finance (MOF) auctioned on Wednesday four billion euro-denominated sovereign bonds, with the 5-year tranche priced at -0.152 percent yield for the first time amid brisk international demand, reported Xinhua Finance late on Thursday.
The three-tranche product, whose issuance debuted on the second year since 2019 when China resumed euro-denominated sovereign bond issues, hailed all time low offering yields after being 4.5 times subscribed by global buyers.
Under the product were sold 750 euros of 5-year bonds, two billion euros of 10-year bonds and 1.25 billion euros of 15-year bonds, with the latter two's yields at 0.318 percent and 0.664 percent respectively.
Thanks to China's resilient economy, a host of international investors including foreign central banks, sovereign wealth funds, pension funds, asset management institutions, and banks rushed to participate in subscription of the product and 72 percent of the issues were pocketed by European investors at the end.
Previously, the three-tranche euro-denominated sovereign debt was given A+ rating by Standard and Poor's and Fitch Ratings and A1 rating by Moody's.
Later, the product will be listed on London Stock Exchange, Luxemburg Stock Exchange and the stock exchange of Hong Kong and the 5-year tranche will be for the first time under custody of and settlement through the central moneymarkets unit (CMU) of Hong Kong to enhance its financial infrastructure construction.
MOF said the sovereign bond issue embodied China's determination and confidence in opening-up of higher level and efforts to adapt to the economic and financial globalization. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
