Linklaters, A&O Shearman and Fangda Partners advised on China’s €4bn euro-denominated sovereign bond issuance.

This transaction marks the PRC government’s debut issuance of euro-denominated sovereign bonds in Luxembourg.

The bonds have been listed on the Stock Exchange of Hong Kong Limited and the Official List of Luxembourg Stock Exchange (Bourse de Luxembourg or LuxSe), marking the first time China has issued euro-denominated sovereign bonds in Luxembourg. The net proceeds raised will be used by the Ministry of Finance for general governmental purposes.

The offering attracted strong demand from a broad base of investors across Europe, Asia, the Middle East, and the offshore U.S. market. Investor types included sovereigns, asset managers, financial institutions and insurance companies, and dealers. Total subscriptions reached EUR100.1bn, approximately 25 times the offering size. The 2032 Bonds were 26.5 times oversubscribed. The subscription rates are the highest for China’s euro-denominated bonds.

Linklaters acted as the sole international counsel to the Ministry of Finance of the People’s Republic of China (MOF) on its issuance of US$4bn Rule 144A and Reg S sovereign bonds in Hong Kong SAR, listed on the Hong Kong Stock Exchange.

The multi-disciplinary and cross-jurisdictional Linklaters team was led by capital markets Partners William Liu and Min Fang, with support from Counsel Christian Felton. US tax Counsel Omer Harel and Amanda Gabai also provided support on the transaction.

A&O Shearman has advised the joint lead managers and the joint bookrunners on the Ministry of Finance of the People’s Republic of China (the Ministry of Finance)’s.

The A&O Shearman team was led by Partner Agnes Tsang, with support from Senior Associate Jiayin Yu, paralegals Michael Leung (pending admission as a Hong Kong-qualified solicitor) and Jenny Chau, and trainee Eunice Wong.

Fangda Partners acted as the underwriters’ PRC legal counsel.