China has secured more than $40bn in orders for its first dollar bond offering since 2021, as part of plans to support its struggling economy.

The amount is 20 times the size of the bonds on offer, and has helped bring the yields China will pay to within one basis point of the yield on US Treasuries with a similar maturity.

China raised $2bn in 3-year and 5-year notes at spreads of 1bp and 3bp over Treasuries, according to a person familiar with the matter. They were initially priced at 25 and 30 basis points.

Although the bonds were available to investors worldwide, officials said they would be offered in Riyadh, an unconventional venue as London, New York and Hong Kong are usually chosen for such transactions.

The choice follows recent efforts to strengthen economic ties between the two countries. Officials met earlier this year to discuss cooperation, the results of which can be seen in China’s increased investment in Saudi Arabia.