China Eximbank successfully issued euro- and US dollar-denominated bonds on 8 October, including a 5-year EUR700 million bond with zero coupon rate and a 3-year USD300 million bond with a floating coupon rate of three-month USD Libor plus 48bps.
The issuance represents the Bank’s second public offering of bonds in the offshore market in 2019. It has attracted active subscriptions from international investors. The deal has the lowest final price among bonds of the same type issued by Chinese issuers. The euro-denominated bond issued by the Bank also becomes the first zero-coupon bond of its kind issued by Chinese issuers.
The issuance sets a new benchmark for Chinese issuers to issue euro- and dollar-denominated bonds. The capital raised will be used to facilitate the Bank’s foreign exchange credit business, thus enabling the Bank to support key priorities including the Belt and Road Initiative and international industrial capacity cooperation.