China plans RMB 4 billion tap of bonds due 2024, RMB 1 billion 10-year bonds

By William Gullotti

Buffalo, N.Y., Aug. 12 – The Central People’s Government of the People’s Republic of China will issue additional renminbi-denominated 2.44% bonds due 2024 and RMB 1 billion of 10-year bonds, according to a memo dated Aug. 4 and released Friday.

China’s Ministry of Finance is offering a RMB 4 billion add-on to its existing RMB 2.5 billion 2.44% bonds due 2024 (CMU Instrument No: BCMKFB22009), first issued June 17.

Concurrently, it is also offering a new issue of RMB 1 billion of 10-year bonds at par.

Both offerings are being conducted via competitive tenders, with the additional 2024 bonds determined by competitive price-based bidding and the new 2032 bonds determined by competitive coupon-based bidding. The competitive tenders will determine the issue price of the 2024 tap as well as the coupon rate of the new 2032 series.

Tenders had to be submitted from 9:30 p.m. ET to 10:30 p.m. ET on Aug. 10, with settlement to take place two business days after that.

Bank of Communications Co., Ltd., Hong Kong Branch is the issuing agent.

Both series will be listed on the Hong Kong Exchange.

Linklaters and the Law Department of China’s Ministry of Finance are legal advisers to the issuer under Hong Kong law and China law, respectively. Deacons and Fangda Partners are legal advisers to the issuing agent under Hong Kong and China law, respectively.

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