China sovereign draws US support

摘要

US investors helped the PEOPLE'S REPUBLIC OF CHINA raise US$6bn from its latest sovereign bond issue, underlining the resilience of US demand in a fractious political environment. The four-tranche 144A/Reg S offering marks the first time China has targeted US investors since 2004. Even in the run-up to the US presidential election, US-China tensions had no noticeable impact on demand. Books were overwhelming, with final orders of more than US$27.2bn, or 4.5 times the deal size, well ahead of last year's US$16.5bn. US investors bought about 15% of the bonds, while EMEA took 28% and Asia 57%. "The 144A format for the US dollar benchmark led to a strong reception from US onshore real-money investors, in addition to global SSA and institutional investors, which had already showed strong interest and support for China issuances in the last three years," said Samuel Fischer, head of China onshore DCM at Deutsche Bank.