BUSINESS China prices $1 billion 5-year bond, $1 billion 10-year bond


China prices $1 billion 5-year bond, $1 billion 10-year bond

Reuters | Reuters

07:41, October 27, 2017

China sold a rare sovereign bond at lower spreads than initially indicated as huge investor demand allowed the issuer to tighten the price guidance.

Bankers indicated the issuer, absent from global debt markets since 2004, had attracted orders in excess of $22 billion versus the $2 billion it was seeking. Demand was split evenly between the two tranches on offer.

The $1 billion, 5-year tranche was priced at 15 basis points over US Treasuries while the $1 billion, 10-year bond was sold at 25 bps over. That compares with the initial guidance of 30-40 bps and 40-50 bps respectively.

Bank of China, Bank of Communications , Agricultural Bank of China, China Construction Bank, CICC, Citigroup, Deutsche Bank, HSBC, ICBC and Standard Chartered Bank have been hired to manage the deal. 

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