By Marisa Wong
Los Angeles, Oct. 27 – The People’s Republic of China through its Ministry of Finance disclosed more details on its $4 billion of notes (A1/A+/A+) in four series due in three, five, 10 and 30 years in an offering circular released on Wednesday.
The republic sold
• $1 billion of ¾% three-year notes at 99.935 to yield 0.772% at a spread of Treasuries plus 6 basis points versus initial price talk in the Treasuries plus 35 bps area;
• $1.5 billion 1¼% five-year notes at 99.879 to yield 1.275% at a spread of 12 bps over Treasuries, low to initial talk in the 45 bps area;
• $1 billion of 1¾% 10-year notes at 99 to yield 1.86% with a spread of Treasuries plus 23 bps, after initial talk in the 55 bps area; and
• $500 million of 2½% 30-year notes at 97.824 to yield 2.605% at a spread of Treasuries plus 53 bps, lower than talk in the 85 bps area.
All four series came approximately 30 bps lower than initial talk, as previously reported. The bonds sold represented a record low pricing spread for China’s dollar sovereign bonds, the Ministry of Finance noted. The deal was more than six times oversubscribed.
Bank of China, Bank of Communications, China Construction Bank, China International Capital Corp., ICBC, BofA Securities, Citigroup, Credit Agricole CIB, CTBC Bank, Deutsche Bank, Goldman Sachs, JPMorgan, Mizuho Securities and Standard Chartered Bank are joint lead managers and joint bookrunners for the Rule 144A and Regulation S notes.
Proceeds will be used for general governmental purposes.
The bonds were sold in Hong Kong.
| Issuer: | People’s Republic of China
|
| Issue: | Sovereign bonds
|
| Amount: | $4 billion
|
| Bookrunners: | Bank of China, Bank of Communications, China Construction Bank, China International Capital Corp., ICBC, BofA Securities, Citigroup, Credit Agricole CIB, CTBC Bank, Deutsche Bank, Goldman Sachs, JPMorgan, Mizuho Securities and Standard Chartered Bank
|
| Pricing date: | Oct. 19
|
| Issue date: | Oct. 26
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
| Fitch: A+
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Three-year bonds
|
| Amount: | $1 billion
|
| Maturity: | Oct. 26, 2024
|
| Coupon: | ¾%
|
| Price: | 99.935
|
| Yield: | 0.772%
|
| Spread: | Treasuries plus 6 bps
|
| Price talk: | Treasuries plus 35 bps area
|
| Cusip: | 60367QAA1, Y5325QAD4
|
|
|
| Five-year bonds
|
| Amount: | $1.5 billion
|
| Maturity: | Oct. 26, 2026
|
| Coupon: | 1¼%
|
| Price: | 99.879
|
| Yield: | 1.275%
|
| Spread: | Treasuries plus 12 bps
|
| Price talk: | Treasuries plus 45 bps area
|
| Cusip: | 60367QAB9, Y5325QAE2
|
|
|
| 10-year bonds
|
| Amount: | $1 billion
|
| Maturity: | Oct. 26, 2031
|
| Coupon: | 1¾%
|
| Price: | 99
|
| Yield: | 1.86%
|
| Spread: | Treasuries plus 23 bps
|
| Price talk: | Treasuries plus 55 bps area
|
| Cusip: | 60367QAC7, Y5325QAF9
|
|
|
| 30-year bonds
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| Amount: | $500 million
|
| Maturity: | Oct. 26, 2051
|
| Coupon: | 2½%
|
| Price: | 97.824
|
| Yield: | 2.605%
|
| Spread: | Treasuries plus 53 bps
|
| Price talk: | Treasuries plus 85 bps area
|
| Cusip: | 60367QAD5, Y5325QAG7
|
|
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