China has returned to the US dollar-denominated bond market
for the first time in 13 years with a $2 billion issuance,
setting a benchmark for future offshore debt sales.
The country’s Ministry of Finance (Mofcom)
traditionally sells bonds in renminbi, with holdings in US
dollars believed to be around one percent of total government
debt ($200 million approximately). Its last non-renminbi
denominated issuance was in 2004, when it sold $1.7 billion
worth of bonds.
"The size of the issuance is a small amount in comparison to
investors’ demand received but the issue size
is not the only consideration for the Ministry of Finance,"
said Allen & Overy partner
Agnes Tsang, which advised the syndicate of 10 lenders.
Setting the tone
This latest issuance, on October 26, comprised $2 billion of
five and 10-year...