The euro-denominated bond is the first Belt and Road-themed bond by Bank of China (BOC) listed on the Luxembourg Stock Exchange. It was issued via BOC’s Luxembourg branch.
The Belt and Road initiative is a global infrastructure project launched by the Chinese government to boost trade and stimulate economic growth in the Asian region. It seeks to mobilise close to a trillion dollars through investments in infrastructure around the globe. BOC’s latest issuance is its fourth bond in the international bond market that supports projects related to the Belt and Road initiative. The total amount issued by BOC under the Belt and Road theme now amounts to the equivalent of over USD 10 billion.
“Our fruitful relationship with Bank of China leads us to continuously support BOC in its innovative financing transactions. As a result, it allows us to bridge issuers from China with international investors”, comments Robert Scharfe, CEO of the Luxembourg Stock Exchange.
The Belt and Road-themed bond from BOC received excellent market reactions. Oversubscribed 2.6 times, total orders from investors exceed 1.6 billion euro. “The successful issuance of the bond shows BOC is well recognised by global investors”, comments Zhou Lihong, CEO of BOC Luxembourg.
The euro issuance is highly sought-after by sovereign investors, 41% of the final orders were placed by central banks and agencies – a record for an overseas issuance made by a Chinese company.