Ministry of Finance issues EUR4 billion sovereign bonds in Luxembourg

The dual-tranche Regulation S issuance comprises:

• EUR2bn 2.375% Bonds due 2029 (the 2029 Bonds)
• EUR2bn 2.625% Bonds due 2032 (the 2032 Bonds)

The bonds have been listed on the Stock Exchange of Hong Kong Limited and the Official List of Luxembourg Stock Exchange (Bourse de Luxembourg or LuxSe), marking the first time China has issued euro-denominated sovereign bonds in Luxembourg. The net proceeds raised will be used by the Ministry of Finance for general governmental purposes.

The offering attracted strong demand from a broad base of investors across Europe, Asia, the Middle East, and the offshore U.S. market. Investor types included sovereigns, asset managers, financial institutions and insurance companies, and dealers. Total subscriptions reached EUR100.1bn, approximately 25 times the offering size. The 2032 Bonds were 26.5 times oversubscribed. The subscription rates are the highest for China’s euro-denominated bonds

The A&O Shearman team was led by partner Agnes Tsang, with support from senior associate Jiayin Yu, paralegals Michael Leung (pending admission as a Hong Kong-qualified solicitor) and Jenny Chau, and trainee Eunice Wong.