China Eximbank successfully issued a 3-year EUR1 billion bond with the coupon rate of 0.3% in the offshore market on 27 February 2019.
This issuance represents China Eximbank’s another public offering of euro bond in the offshore bond market since last year. It receives positive response and attracts subscription orders from a number of international investors, including foreign central banks and leading international investment institutions. The total subscription rate exceeds four times, which is the Bank’s largest over-subscription rate among all the off-shore issuances in recent years. Moreover, this deal has the lowest final pricing of issuance among Chinese issuers since December 2017, which helps lower the fund-raising cost.
This issuance not only improves the yield curve of the Bank’s euro bond, but also helps set a benchmark for Chinese issuers to issue euro bonds within this year. The capital raised this time will be used to facilitate the Bank’s foreign exchange credit business and enable the Bank to play a bigger role in promoting China’s opening-up, the Belt and Road Initiative and international industrial capacity cooperation.