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Chinese get taste for euro debt

Step change for fledgling market as Chinese borrowers pile into euro-denominated bonds in hunt for cheap funding and diversification

Chinese get taste for euro debt

Chinese borrowers' dips into the euro-denominated bond market have been rare – until this year, which has seen a surge in activity that is exciting debt bankers now looking forward to busy times ahead thanks to the fresh source of deal flow.

By the halfway point last year, just one China-related company - an Australian subsidiary of electricity utility State Grid Corporation of China - had raised debt funding in euros, in the shape of a €500 million bond. By the end of 2014, the tally had risen to six Chinese borrowers raising a little over €2.6 billion of euro-denominated bonds, according to data provider Dealogic.

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