China sets terms for $2 billion global sovereign bond issue

HONG KONG, Oct 26 (Reuters) - China's ministry of finance has issued price guidance for a two-tranche sovereign bond issue in the global debt market, expected to raise $2 billion.

A term sheet seen by Reuters on Thursday showed pricing on the 5-year tranche in the sovereign's first offshore bond offering since 2004 has been indicated at 30-40 basis points (bps) over US Treasuries. The 10-year tranche is indicated at 40-50 bps above.

Bank of China, Bank of Communications, Agricultural Bank of China, China Construction Bank , CICC,Citigroup, Deutsche Bank, HSBC, ICBC, Standard Chartered Bank, have been hired to manage the deal. (Reporting by Umesh Desai; Editing by Eric Meijer)