Shanghai State-owned Assets Management Successfully Issues the First Corporate Bonds in 2019 to Facilitate the High-quality Development of Key Municipal Financial Institutions
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On June 17, Shanghai State-owned Assets Management Co., Ltd., a subsidiary of Shanghai International Group, successfully issued its first phase of corporate bonds of RMB 1.5 billion in 2019. The bonds are divided into 2 varieties: The 3-year “19 HG 01” valued at RMB 900 million with a coupon rate of 3.78%, and the 5-year “19 HG 02” valued at RMB 600 million with a coupon rate of 4.10%, both of which set the lowest interest rate for AAA corporate bonds of the same maturity of central and state-owned enterprises registered in Shanghai since 2017, and are significantly lower than the average 3-year 55bps and 5-year 56bps of the same caliber. Shanghai State-owned Assets Management Co., Ltd. has been recognized in terms of its status and influence in the capital market.
It is the first time to issue multi-varieties of bonds in the same period within SIG system. With Guotai Junan Securities as the lead underwriter and Haitong Securities as the co-lead underwriter, the bonds meet the allocation needs of diversified investment institutions in the market and have attracted more than RMB 5 billion of funds from multiple types of financial institutions, including banks, funds, insurance and securities. Shanghai State-owned Assets Management Co., Ltd. adopts a completely two-way callback issuance method, and, equipped with favorable conditions for flexibly selecting fund allocation structure according to capital cost, capital period and actual needs, remains at the forefront of the capital market.
The funds raised will continue to be used for the development of municipal financial institutions controlled by SIG, enhancing the capital reserve of key enterprises to help them achieve high-quality development, and supporting the building of Five Centers in Shanghai. In the next step, Shanghai State-owned Assets Management Co., Ltd. will continue to be actively involved in the overall development of Shanghai, actively serve the “Twin-wheel” strategy of state-owned capital operation and investment management, and give full play to the leading role of state-owned capital.
