China issues 4-bln-euro sovereign bonds in Luxembourg

China's Ministry of Finance announced on Wednesday that it has successfully issued euro-denominated sovereign bonds worth 4 billion euros (about 4.63 billion U.S. dollars) in Luxembourg on Tuesday.

Of the total, the issuance of four-year bonds stood at 2 billion euros in value with a yield of 2.401 percent, and the issuance of seven-year bonds totaled 2 billion euros with a yield of 2.702 percent, the ministry said in a statement on its website.

This marks the first time that China had issued euro-denominated sovereign bonds in Luxembourg, said the ministry.

The bonds were warmly received by the market, with international investors subscribing enthusiastically. Total subscription reached 100.1 billion euros, 25 times the issuance amount.

The investor base was diversified in both geography and type, according to the statement.

By region, European and Asian investors accounted for 51 percent and 35 percent of total subscription, while Middle Eastern and offshore U.S. investors accounted for 8 percent and 6 percent, respectively.

By investor type, sovereign institutions accounted for 26 percent of the investor base, while funds and asset management institutions, banking and insurance institutions, and dealers represented 39 percent, 32 percent and 3 percent, respectively.

The ministry said the bonds are fully deposited with the Central Moneymarkets Unit of the Hong Kong Monetary Authority and will subsequently be listed on the Hong Kong Stock Exchange and the Luxembourg Stock Exchange. ■