PRC Government’s €4 Billion Bond Offering

Linklaters advised the PRC government on its €4 billion bond offering.

On 5 November 2019, the Ministry of Finance of the People’s Republic of China priced €4billion of bonds in Paris, the largest ever foreign currency sovereign bond offering by the Chinese government. This is the second issuance of euro-denominated sovereign bonds by the Ministry of Finance, 15 years after its last issuance of €1 billion of bonds in 2004. The issuance has attracted an order book of nearly €20 billion from international investors. The successful issuance is testimony of China growth and the strong confidence of international investors in the sovereign credit of China, and will help promote the economic and financial cooperation between China and Europe and provide an important benchmark for euro financings by Chinese enterprises.

This is the first time that the Ministry of Finance has issued a dual listing on both the London Stock Exchange ISM and the Euronext Access Paris. The euro bonds comprise three tranches, €2 billion 7-year bonds (issuance rate: 0.197%), €1 billion 12-year bonds (issuance rate: 0.618%) and €1 billion 20-year bonds (issuance rate: 1.078%), all of which target institutional investors.

Linklaters advised on the issuance of the euro bonds through a join team in Hong Kong, Shanghai, London and Paris offices, led by Head of China William Liu (Picture).

Involved fees earner: William Liu – Linklaters;

Law Firms: Linklaters;

Clients: People’s Republic of China;