China’s US$6 billion 144A/Reg S Sovereign Bond Offering

Linklaters has advised the Ministry of Finance of the People’s Republic of China on its US$6 billion 144A/Reg S sovereign bonds offering.

The transaction was priced on 14 October 2020 and is the first time the MOF has targeted US and global investors in a Rule 144A/Reg S offering.

The hugely successfully deal comprise four series, US$1.25 billion 3-year bonds (yield: 0.425%), US$2.25 billion 5-year bonds (yield: 0.604%), US$2 billion 10-year bonds (yield: 1.226%) and US$500 million 30-year bonds (yield: 2.310%). This issuance has attracted record demand with an order book of nearly 4.7 times the issue size and was priced with negative new issue premium.

The Linklaters team was led by Partners William Liu (Picture) and Hyung Ahn, with support from Counsel, Christian Felton and Senior US Associate, Shan Jiang.

Involved fees earner: Hyung Ahn – Linklaters; Christian Felton – Linklaters; Shan Jiang – Linklaters; William Liu – Linklaters;

Law Firms: Linklaters;

Clients: People’s Republic of China Ministry of Finance;

Author: Michael Patrini