On 1 June, the head office and the Paris Branch of China Eximbank joined hands in the international capital market to successfully issue 550 million euro of five-year fixed rate bonds and 300 million US dollar of three-year floating rate notes, with coupon rates being 0.75% and three-month Libor plus 60bps respectively.

The highlight of this fundraising event lies in the issuance of two bonds in tandem with different currencies, maturities and interest rate structures, a strategy of differentiation adopted by the Bank and its Paris Branch to help broaden the base of international investors. It is particularly worth mentioning that this was the first bond issuance by a Chinese sovereign entity after Moody’s downgraded China’s sovereign credit ratings. After careful preparation and extensive communication the bonds were priced the same as before the credit downgrade, which demonstrates the unchanged confidence from international mainstream investors in China’s economy and the future development of China Eximbank. This success has also created favorable conditions for other Chinese issuers to enter the international market. 

The event also marked the first issuance by China Eximbank under the newly-established Eximbank Funding Program, an overseas financing program that covers medium-term notes and short-term commercial papers in foreign currencies. It is the first financing program initiated by a Chinese issuer that contains short-, medium- and long-term bonds. It is aimed at putting the head office of China Eximbank and its overseas branch in a better position to seize market opportunities and raise funds from the international market in a more flexible and proactive manner.