China has released initial price guidance for its latest euro-denominated sovereign bond issuance, with a term sheet showing plans to raise €4 billion across two maturities. Investors were guided to a 4-year tranche at mid-swaps +28 bps and a 7-year tranche at mid-swaps +38 bps, according to documents reviewed by Reuters.
This marks Beijing’s continued use of offshore euro funding—a strategy China has pursued for several years to
- diversify its investor base,
- deepen financial ties with Europe,
- and avoid over-reliance on U.S. dollar markets at a time of heightened geopolitical and currency sensitivity.
Euro bonds also help China tap demand from European institutions seeking high-grade sovereign credit with modest yield pick-up over core markets.
Such issuance has become a recurring part of China’s annual funding plan, showcasing its commitment to maintaining a presence in global capital markets and signalling confidence in its credit standing.
