Following an official visit from the Vice Minister of Finance of the People’s Republic of China to the Grand Duchy last week, a new EUR 4 billion sovereign bond from Asia’s largest nation has been successfully listed on the Luxembourg Stock Exchange today.
Today, the Ministry of Finance of the People’s Republic of China and the Luxembourg Stock Exchange (LuxSE) announced the successful listing of a EUR 4 billion bond from the sovereign on LuxSE’s Euro MTF.
The issuance marks the latest step in the long-standing relationship between the People’s Republic of China and LuxSE, which dates back to 1994, when China’s first international sovereign bond was listed on the exchange.
A long-standing relationship
This issuance reflects China’s commitment to deepening economic collaboration and mutual access between European and Asian financial centres and builds on the strong partnership that has developed between China and Luxembourg over the past three decades.
« China’s first launch of sovereign bonds in Luxembourg demonstrates China’s firm determination to advance high-standard opening up. It is of great significance for enhancing international investors’ confidence and stabilising market expectations. It will further promote the development of China-Luxembourg bilateral relations, and will help deepen economic, trade and financial cooperation and ties between China and Luxembourg, and further between China and Europe,” said Ms Guo Tingting, Vice Minister of Finance of the People’s Republic of China.
“We are honoured to welcome the People’s Republic of China back to LuxSE with this important sovereign issuance, and to have celebrated its listing on our markets in the presence of China’s Vice Minister of Finance Ms. Guo Tingting. This listing reflects China’s commitment to international capital markets and the prominent role LuxSE continues to play as the leading listing venue for sovereign issuers when tapping into international bond markets,” said Ms Julie Becker, CEO of LuxSE.
Strengthening cross-border collaboration
The new EUR 4 billion sovereign bond was jointly arranged by Bank of China, Bank of Communications (BOCOM), and Standard Chartered, underscoring the strong cooperation between Chinese and European financial institutions. The listing further strengthens LuxSE’s prominent role as the venue of choice for sovereign issuers when tapping international bond markets and reinforces Luxembourg’s position as a gateway between China and European capital markets.
“Bank of China is honoured to have been deeply involved throughout the entire issuance process of the Chinese Ministry of Finance. This has provided us with a valuable opportunity to engage closely with local investors and contribute to further strengthening China-Luxembourg cooperation, as well as consolidating and enhancing Luxembourg’s position as an international financial hub,” said Mr Liu Jiandong, Chairman, Bank of China (Europe) S.A.
“BOCOM has been actively fulfilling its responsibilities as a major state-owned bank by providing high-quality financial services to Chinese-funded companies in Europe and European companies. As a listing agent at LuxSE, BOCOM has been vigorously promoting the listing of Chinese bonds on the exchange. The recent decision by the Ministry of Finance to issue euro-denominated sovereign bonds in Luxembourg marks a significant milestone. This strategic move is expected to inject strong momentum into the deepening of China-Luxembourg cooperation and elevate bilateral financial collaboration to a new level,” said Mr Yang Tao, Executive Vice President, Bank of Communications Co., Ltd.
“Standard Chartered has a long history in both China and Europe. As a super connector between the world’s most important economies, we are honoured to support the world’s second- and third-largest economic blocs complement each other in driving global growth and prosperity. China’s very successful issuance of this dual-tranche EUR bond LuxSE underscores China’s strong standing with high quality international investors. Standard Chartered wishes to congratulate the Ministry of Finance on this highly visible and successful transaction,” said Mr Nicolo Salsano, CEO, Europe and Standard Chartered Bank AG.
Deep-rooted cooperation
China’s partnership with Luxembourg has expanded significantly in recent years. LuxSE now lists a wide range of bonds from Chinese issuers and beyond this, continues to serve as a bridge for sustainable and green finance between Europe and China.
Today’s listing strengthens the financial ties between China and Luxembourg, highlighting the long-term collaboration between both markets and Luxembourg’s continued role as a preferred European hub for Chinese financial institutions and international capital-raising.
For more information, please visit the bond’s security card: https://www.luxse.com/issuer/China/33102
