LONDON - The Ministry of Finance of the People's Republic of China (MOF) has successfully issued USD 2 billion in bonds, as announced by Deutsche Bank AG (NYSE:DB), London, without the need for market stabilization measures. This post-stabilization period notice follows the initial communication on November 13, 2024, indicating the potential for such actions.
The securities in question include USD 1.25 billion of 3-year bonds with a 4.125% interest rate and USD 750 million of 5-year bonds at a 4.250% rate. The 3-year bonds were issued at a price of 99.557% and the 5-year bonds at 99.599%. The spread over the benchmark for the 3-year bonds was set at 1 basis point above the Treasury's 4.125% note due November 15, 2027, and for the 5-year bonds, 3 basis points above the Treasury's 4.125% note due October 31, 2029.
The absence of stabilization, a process where underwriters make open market purchases to support the price of a new issue, indicates that the offering was met with sufficient demand to maintain pricing without intervention.
The syndicate of stabilizing managers included prominent financial institutions such as the Bank of China Limited, Bank of Communications Co., Ltd. Hong Kong Branch, and Merrill Lynch (Asia Pacific) Limited, among others.
It is important to note that this bond issue is not an offer of securities for sale in the United States. The securities have not been registered under the United States Securities Act of 1933 and, as such, may not be offered or sold in the United States absent registration or an exemption from registration. Furthermore, there has been no public offer of these securities in the United States.
This announcement serves purely as a factual report based on a press release statement and does not constitute any form of financial advice or an invitation to engage in investment activities. The information provided is intended for general knowledge and does not promote the MOF or the securities issued.
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