China plans record sale of dollar bonds worth US$6 billion
- Ministry of Finance is considering tenors of three years, five years, 10 years and 20 years, said sources
- Chinese borrowers have issued US$195 billion of dollar bonds so far this year, just shy of the US$211 billion record set in 2017
China is planning a record sale of sovereign bonds in dollars, with a potential US$6 billion offering, according to people familiar with the discussions.
The Ministry of Finance is considering tenors of three years, five years, 10 years and 20 years, according to the people, who asked not to be named as the talks are not public. The ministry did not immediately respond to a request for comment.
This marks the third straight year for China to issue dollar debt, and underscores the nation’s continued interest in building out an offshore market where its companies and local authorities can tap funding. The 20-year note will fill a gap between 10-year and 30-year securities issued in 2018.
“It reaffirms China’s determination to develop an orderly offshore dollar bond market for Chinese issuers,” Anne Zhang, head of fixed income for JPMorgan Private Bank in Asia, said of the offering. “The new deal will further complete a sovereign curve,” she said.
China’s sale is planned for as soon as Tuesday, the sources said. It follows the country’s first euro bond in 15 years – which saw blowout demand among investors eager to snap up securities with positive coupons amid a swathe of negative-yielding debt.