China Launches 4 Billion Euro Sovereign Bond Deal

• China launched a sale of euro-denominated sovereign bonds on Wednesday aimed at raising 4 billion euros ($4.62 billion), three weeks after the country raised $4 billion via a U.S. dollar bond sale that drew robust demand. 
• China's Ministry of Finance is issuing the euro bond in three, seven, and twelve year tranches, according to a term sheet seen by Reuters on Wednesday. The Ministry said on Oct. 29 it will issue the debt in Hong Kong to raise 4 billion euros. 
• Beijing has been issuing sovereign bonds offshore regularly, in a bid to integrate China more closely into the global financial system, and build a price benchmark for overseas issuance of Chinese corporate bonds. It conducted similar euro bond sales last year and in 2019, when Beijing sold its first euro-denominated government debt in 15 years. 
• The euro bond sale comes as China's economy is slowing amid a power crunch and surging raw material prices, while China's dollar bond market has tumbled due to fears of contagion from China Evergrande Group's debt problems.

(Source: Reuters)