$6 billion sovereign bond deal is Finance Ministry's biggest

The Ministry of Finance announced on Wednesday that it has successfully issued $6 billion of US dollar-denominated sovereign bonds, the biggest offering ever of its kind, in Hong Kong.

The Ministry sold the bonds in four tranches. The three-year bonds were issued at a yield of 1.929 percent, 35 basis points above benchmark US treasuries, according to a statement on the website.

The successful issuance would help to improve the US dollar bond yield curve. Global investors showed confidence in the Chinese bond market, and they also expected stable economic growth in the country, it said.

"This has been the largest (such kind of bond) offering by an Asian sovereign issuer to date," said Samuel Fischer, head of China onshore debt capital markets at Deutsche Bank.

"The transaction priced within the Ministry of Finance secondary curve across different tranches, and attracted a number of key sovereign and real money investors.

"The Ministry has further built up its US dollar curve with this jumbo deal, following the very successful bond issuance in euros earlier this month. The Ministry of Finance is effectively building up a solid track record as a regular issuer in the international market," Fischer said.