Asianfin -- China is offering its first dollar-denominated bonds in Saudi Arabia, marking its return to the international bond market since 2021.

The country is marketing three-year and five-year securities, with initial price guidance set at approximately 25 basis points and 30 basis points over the respective U.S. Treasury yields, according to sources familiar with the matter.

Earlier this month, China’s Ministry of Finance announced plans to issue up to $2 billion in bonds. By Wednesday morning, the deal had attracted orders exceeding $25.7 billion, according to one source. Final order amounts may differ as pricing evolves during the sale process.

The decision to hold the bond sale in Saudi Arabia is notable, as major bond issuances typically take place in financial hubs such as London, New York, and Hong Kong. However, the choice reflects the strengthening economic ties between China and Saudi Arabia. The two countries held discussions earlier this year to deepen their cooperation, with China’s largest steel producer doubling its investment in Saudi Arabia as a sign of the growing partnership.