By Wendy Van Sickle
Columbus, Ohio, Nov. 11 – The People’s Republic of China through its Ministry of Finance priced €4 billion of senior bonds (A1/A+/A+) in three series, according to a news release Thursday and a release from the ministry.
Pricing of the Regulation S notes came tight to initial talk, and the offering was more than four-times oversubscribed, according to a release from China International Capital Corp., a joint bookrunner.
The €1.5 billion three-year tranche priced with a 0% coupon to yield negative-0.192% at mid-swaps plus 0 basis points, tight to guidance of mid-swaps plus 20 bps area.
The €1.5 billion seven-year tranche was tightened to mid-swaps plus 20 bps from guidance in the mid-swaps plus 40 bps area. The yield on the bonds is 0.216%.
Finally, the €1 billion 12-year tranche was tightened to mid-swaps plus 52 bps from guidance in the mid-swaps plus 65 bps area. The yield was 0.759%.
The final order book was above €17.2 billion.
Bank of China, Bank of Communications, China International Capital Corp., BofA Securities, Credit Agricole CIB, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Societe Generale, Standard Chartered Bank and UBS acted as joint lead managers and joint bookrunners.
| Issuer: | People’s Republic of China through its Ministry of Finance
|
| Issue: | Senior bonds
|
| Amount: | €4 billion
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| Bookrunners: | Bank of China, Bank of Communications, China International Capital Corp., BofA Securities, Credit Agricole CIB, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Societe Generale, Standard Chartered Bank and UBS
|
| Distribution: | Regulation S
|
| Ratings: | Moody’s: A1
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| S&P: A+
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| Fitch: A+
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| Announcement date: | Nov. 11
|
|
|
| Three-year bonds
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| Amount: | €1.5 billion
|
| Tenor: | Three years
|
| Coupon: | 0%
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| Yield: | -0.192%
|
| Spread: | Mid-swaps plus 0 bps
|
| Price guidance: | Mid-swaps plus 20 bps area
|
|
|
| Seven-year bonds
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| Amount: | €1.5 billion
|
| Tenor: | Seven years
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| Yield: | 0.216%
|
| Spread: | Mid-swaps plus 20 bps
|
| Price guidance: | Mid-swaps plus 40 bps area
|
|
|
| 12-year bonds
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| Amount: | €1 billion
|
| Tenor: | 12 years
|
| Yield: | 0.759%
|
| Spread: | Mid-swaps plus 52 bps
|
| Price guidance: | Mid-swaps plus 65 bps area
|
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