China launches euro bond sale of US$5.7 billion, term sheet shows

China's finance ministry has launched a 5 billion euro (US$5.7 billion) bond sale, a term sheet seen by Reuters on Thursday night showed.

The ministry is selling 2.5 billion euros of five-year bonds, 1.5 billion euros of eight-year bonds and 1 billion euros of 12-year bonds, the term sheet showed.

The five-year tranche was launched at mid-swaps plus three basis points, the eight-year tranche at plus 12 basis points and the 12-year tranche at plus 22 basis points, according to the sheet.

That compared with initial price guidance of mid-swaps plus 15 basis points for the five-year tranche, plus 22 basis points for the eight-year tranche and plus 33 basis points for the 12 year tranche.

Mid-swaps are a benchmark used to price euro bonds.

Allocations and pricing are expected shortly, and the deal is due to settle on July 3, the sheet showed.

Proceeds will be used for general government purposes, according to the sheet.

China's finance ministry last week said it planned to sell up to 5 billion euros of sovereign bonds in Luxembourg in the week of June 22. It then hired a group of Chinese and global banks to arrange the possible sale.

China last sold euro bonds in November, when it raised 4 billion euros through a two-part deal that drew strong investor demand.

Reuters

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