Deutsche Bank Supports China’s €2 Billion Sovereign Bond Return to Euro Market

Deutsche Bank Supports China’s €2 Billion Sovereign Bond Return to Euro Market

(IN BRIEF) Deutsche Bank has played a key role in helping China’s Ministry of Finance issue €2 billion in international sovereign bonds, marking China’s return to the euro bond market since 2021. The dual-tranche offering, which included three- and seven-year bonds, was 8.1 times oversubscribed, attracting strong interest from global investors including central banks, sovereign wealth funds, and institutional investors. This issuance sets a new pricing benchmark for Chinese corporate offshore bonds and demonstrates China’s economic resilience. Deutsche Bank has been involved in nine consecutive international sovereign bond mandates from China’s Ministry of Finance since 2017, highlighting its leadership in China’s debt capital markets.

(PRESS RELEASE) FRANKFURT, 28-Sep-2024— /EuropaWire/ — Deutsche Bank has supported China’s Ministry of Finance (MoF) in the successful issuance of a €2 billion International Sovereign Bond. The transaction, which was split into three- and seven-year tranches, garnered significant interest from investors across both Asia and Europe. Acting as Joint Lead Manager and Bookrunner, Deutsche Bank played a key role in the bond offering, marking the Ministry’s return to the euro bond market since its last issuance in 2021. The deal also established a new pricing benchmark for Chinese corporate offshore bonds.

The bond issuance was highly successful, attracting an 8.1 times oversubscription from a wide range of global investors, including central banks, sovereign wealth funds, multilateral institutions, and development banks. The interest also extended to fund managers across developed and emerging markets in Europe.

Rose Zhu, Deutsche Bank China’s Chief Country Officer, expressed pride in facilitating the MoF’s offshore bond issuance, highlighting the transaction as a reflection of international investors’ confidence in China’s economic stability. Zhu noted that the bond strengthens China’s Euro yield curve and showcases the country’s resilience.

Samuel Fischer, Deutsche Bank’s Head of China Onshore Debt Capital Markets, commented that the bond’s strong reception followed recent economic stimulus measures, which bolstered market sentiment and led to a rally in China’s stock benchmarks. He added that the issuance will likely boost global demand for Chinese bonds and open new offshore financial channels for Chinese issuers.

Deutsche Bank remains committed to supporting the ongoing liberalization of China’s capital markets and the internationalization of the RMB through its active role in both onshore and offshore markets.

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SOURCE: Deutsche Bank AG