PRC $2 billion sovereign bond issue

Overview:

• The People's Republic of China (PRC) has undertaken a $2 billion sovereign bond issue.
• The rare bond issue was listed in two $1 billion tranches—one being offered at 30-40 basis points over US Treasuries maturing in five years, and the other at 40-50 basis points due 2027.
• The sovereign debt sale should set a price benchmark for state owned companies in China, most of which are active offshore bond market issuers in Asia.
• The issue reinforces China's position as a global player in the financial markets. 

Katrin Kostadinova - Data analyst