China’s €4 billion (US$4.6 billion) euro-denominated bond sale has drawn record demand, highlighting robust investor confidence in its sovereign assets amid a global shift towards diversification.
The subscription rates marked the highest for a euro-denominated bond offering by China, which had previously conducted four such issuances, according to industry players. Investors from Europe, Asia, the Middle East and offshore US accounted for 51 per cent, 35 per cent, 8 per cent and 6 per cent of allocations, respectively.
“Investors have voted their confidence in the creditworthiness of the Chinese government, given the diverse investor type and robust subscription rate we have seen,” said Keith Cheung, head of debt syndicate for Greater China and North Asia at Standard Chartered, the joint lead manager, joint bookrunner and settlement bank of the deal.
Sovereign entities subscribed 26 per cent of the latest euro bond issuance, while asset and fund managers accounted for 39 per cent, and banks and insurers took 32 per cent, according to the Ministry of Finance.
