China is poised to raise up to €4bn from the country’s first euro-denominated sovereign bond issuance in 15 years, as Beijing seeks to take advantage of record-low interest rates to diversify away from dollar debt amid trade tensions with the US.

The issuance, which will price next week, is expected to raise between €3bn and €4bn, according to people with knowledge of the matter, and will create a new pricing benchmark after the expiration of the last euro-denominated sovereign bond, issued in 2004.

“The Chinese government wants to encourage the global system to shift away from reliance on the dollar,” said Julian Evans-Pritchard, senior China economist at Capital Economics. “In itself this isn’t going to make much difference, but it’s the kind of small step you could take with that goal in mind.”