China to Issue Euro Sovereign Bonds in Paris
In a significant move towards diversifying its financial portfolio, China's Ministry of Finance announced on Monday that it will issue euro-denominated sovereign bonds in Paris, the capital of France, during the week commencing September 23, 2024. This issuance, which has received approval from the State Council, will not exceed 2 billion euros, with detailed arrangements to be disclosed closer to the date.
Additionally, the Ministry revealed plans to issue the seventh and eighth tranches of savings bonds for 2024, both in electronic form. These bonds, offering fixed rates and terms, are scheduled for issuance between September 10 and September 19, 2024. The seventh tranche carries a three-year term with an annual coupon rate of 2.18%, while the eighth tranche is set for five years at a 2.3% annual rate, with a maximum issuance of 22.5 billion yuan each.
Interest payments for both bonds will commence on September 10, 2024, with payments made annually. However, issuance will be canceled if the People's Bank of China adjusts the benchmark deposit rate for three-year financial institutions before the issuance date. Should a rate adjustment occur during the issuance period, unsold bonds will be withdrawn and canceled by the Ministry of Finance.
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