CHINA has mandated a fleet of banks for a planned 4 billion euros (US$4.62 billion), euro-denominated sovereign bond sale in Hong Kong, two weeks after the country raised US$4 billion through a U.S. dollar bond sale that drew robust demand. The Ministry of Finance in China hired a dozen banks, including Bank of China, Bank of Communications and China International Capital Corp. for the euro-denominated bond issuance, according to a term sheet seen Friday. Others mandated included Bank of America, Credit Agricole, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Societe Generale, Standard Chartered, and UBS. The term sheet said the issuance is subject to market conditions. China’s finance ministry announced Oct. 29 that it will issue the three-year, seven-year and 12-year euro bonds in Hong Kong, worth a combined 4 billion euros, Wednesday this week. An investor call will be held today with the Ministry of Finance’s Wang Kebing, a separate term sheet showed. The finance ministry didn’t immediately reply to a request for comment. China had similar bond sales last year and in 2019, when the government sold its first euro-denominated government debt in 15 years. China has said issuing sovereign bonds offshore can help build a price benchmark for Chinese corporate bond issuance overseas, and help China integrate more closely into the global financial system. Launching sovereign bond sales in Hong Kong could also strengthen the city’s global financial center status. The proposed euro bond sale follows China’s announcement Oct. 20 it had successfully completed the issuance of US$4 billion sovereign bonds in Hong Kong. (SD-Agencies) | 