China is eyeing bonds worth $4 billion dollars, the term sheet shows, orders reaching $65 billion

China wants to raise $4 billion in two-tranche dollar bonds, according to a term sheet seen by Reuters, a week after Beijing and Washington agreed to a trade war truce.

The People’s Republic of China is planning a three-year dollar bond, which has an initial price guide of three-year Treasury bonds plus about 25 basis points, the term sheet said. Five-year dollar bonds have five-year Treasury guidance plus about 30 basis points.

The size of the deal is capped at $4 billion, according to the term sheet, although orders have reached more than $65 billion, according to a bookrunner message seen by Reuters.

The bond is China’s largest dollar-denominated deal in four years, according to LSEG figures.

China last year raised $2 billion worth of dollar bonds issued in Saudi Arabia, which were the first bonds issued in China.

China’s Finance Ministry did not immediately respond to a faxed request for comment from Reuters.

Trade tensions between China and the US have eased significantly since Chinese President Xi Jinping and US President Donald Trump met in South Korea last week to discuss a trade agreement.

Beijing said on Wednesday it would suspend additional 24% tariffs on US goods for one year but keep levies at 10%.

China, the world’s largest agricultural buyer, will also raise tariffs to 15% on US agricultural goods starting November 10.

The US said last week that tariffs on China would be reduced by about 10 percentage points to 47% as part of a broad deal reached between the two countries.
Source: Reuters