(Corrects amount of sovereign bond issue to $2 billion, instead
of 2 billion yuan, removes comments)
* First China sovereign bond offering post-Moody's downgrade
* First dollar bond sale since 2004-IFR
BEIJING/HONG KONG, June 13 China will sell its
first U.S. dollar denominated sovereign bonds since 2004 in
coming months along with yuan bonds, in its first overseas
issuance of national debt since Moody's downgraded its sovereign
credit rating in May.
The finance ministry said on Tuesday it will issue 14
billion yuan ($2.06 billion) of treasury bonds denominated in
yuan, and $2 billion in dollar-denominated sovereign bonds.
IFR said it would be China's first dollar bond offering
since October 2004.
The ministry said the treasury bonds will be issued in Hong
Kong in two separate tranches of 7 billion yuan each. The first
will be issued by June 30, and the other in the second half of
China has sold yuan denominated bonds over the last few
years as part of efforts to internationalise its currency.
The $2 billion in dollar-denominated sovereign bonds will be
issued in the second half of this year.
Moody's Investors Service on May 24 downgraded its credit
rating on China for the first time in nearly 30 years, saying
the country's financial strength is expected to erode as
economic growth slows and debt continues to rise.
It cut the rating one notch, to A1 from Aa3.
The bond sale will test if the rating agency's action would
increase borrowing costs for Chinese borrowers.
($1 = 6.7969 Chinese yuan)
(Reporting by Beijing Monitoring Desk, Kevin Yao and Umesh
Desai; Editing by Richard Borsuk and Kim Coghill)