Ministry of Finance issues landmark USD4 billion sovereign bonds in Hong Kong

The issuance comprises two tranches:

• USD2bn 3.625% bonds due 2028 (the 2028 Bonds)
• USD2bn 3.750% bonds due 2030 (the 2030 Bonds)

The USD-denominated bonds were offered pursuant to Rule 144A/Regulation S and are listed on The Stock Exchange of Hong Kong Limited. The net proceeds from the issuance will be used by the Ministry of Finance for general governmental purposes.

The offering received strong demand from the market, attracting investors across Asia, Europe, the Middle East and the United States. Total subscriptions reached USD118.2bn, at approximately 30 times the offering size. The five-year tranche was 33 times oversubscribed.

Agnes Tsang, A&O Shearman partner, commented: “Investor participation in this USD4 billion issuance was exceptionally deep and geographically diverse, underscoring international investors’ confidence in China’s economy. We are proud to have contributed to this landmark transaction of the Ministry of Finance of the PRC and advised a broad syndicate, demonstrating our capability to deliver complex cross-border sovereign financings.”

The A&O Shearman team was led by partner Agnes Tsang, with support from senior associates Jiayin Yu and Gordon Ng, associate Eileen Qu and paralegals Michael Leung (pending admission as a Hong Kong-qualified solicitor), Jenny Chau, and trainee Eunice Wong. Partner Kyungwon (Won) Lee and counsel Hae-Ran Song provided U.S. law advice.