China hires 10 banks including Citigroup, HSBC for $2bn sovereign bond issue

The bond is expected to see strong investor demand despite downgrades of China’s sovereign credit rating this year. (Reuters)
Updated 20 October 2017
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China hires 10 banks including Citigroup, HSBC for $2bn sovereign bond issue

HONG KONG: China has hired 10 banks including Agricultural Bank of China Bank of Communications, and Citigroup for its $2 billion dollar-denominated sovereign bond issue, according to an internal bank memo seen by Reuters on Friday.
Besides Citigroup, other foreign banks hired by the People’s Republic of China (PBOC), acting through the Ministry of Finance, for the issue are Deutsche Bank, HSBC , and Standard Chartered, the memo showed.
Bank of China, China Construction Bank , China International Capital Corp, and Industrial and Commercial bank of China will also be working on the transaction.
Due to its scarcity, the bond is expected to see strong investor demand despite downgrades of China’s sovereign credit rating this year by S&P Global Ratings and Moody’s Investors Service. Both agencies cited increasing risks from the country’s rapid build-up of debt.
But the bond sale will test if the rating agencies’ actions would increase borrowing costs for institutions in the world’s second-largest economy.
China’s central bank chief on Thursday issued a warning about asset bubbles in the economy, which looks set to clock its first acceleration in annual growth since 2010, driven by public spending and record bank lending.
The finance ministry said earlier this month that the issue will consist of $1 billion of five-year bonds and $1 billion of 10-year bonds.
Thomson Reuters publication IFR said that the issuance, if completed, would be China’s first dollar bond offering since October 2004, and that the sovereign bond will be issued in the second half of this year.
The memo said the banks hired for the bond issuance would arrange a meeting with fixed-income investors in Hong Kong on October 25.


Iran says no OPEC member can take over its share of oil exports -SHANA

Updated 19 August 2018
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Iran says no OPEC member can take over its share of oil exports -SHANA

  • Senior Iranian diplomat urges OPEC’s secretary general to keep the group away from the political agenda of some members
  • Iran has asked OPEC to support it against new US sanctions

LONDON: A senior Iranian diplomat urged OPEC’s secretary general to keep the group away from the political agenda of some members and said none should be allowed to take over another’s share of its oil exports, Tehran’s oil ministry news agency said on Sunday.
“No country is allowed to take over the share of other members for production and exports of oil under any circumstance, and the OPEC Ministerial Conference has not issued any license for such actions,” SHANA quoted Kazem Gharibabadi, Iran’s permanent envoy to Vienna-based international organizations was quoted as saying.
Iran has asked OPEC to support it against new US sanctions and signalled it is not yet in agreement with Saudi Arabia’s views on the possible need to increase global oil supplies.