"700 million yuan of bond funds have been received, and they can be invested in the construction of new energy and other related industries immediately." Yesterday, the relevant person in charge of Jiangmen Xinhui Yinhai Development Co., Ltd. (hereinafter referred to as "Yinhai Company") happily told reporters.
A few days ago, the company issued 700 million yuan of offshore RMB bonds in the Shanghai Free Trade Zone, and was successfully listed in the Macao Stock Exchange with a term of three years and an interest rate of 4.6%. It was purchased by many banks in the Shanghai Free Trade Zone. This bond issue is the first overseas bond in Jiangmen City and the first bond in Guangdong Free Trade Zone. The coupon rate is the lowest rate for independent credit issuance of local state-owned enterprises with the same rating in China. During the interview with the company, the reporter can also feel that the company is full of exciting atmosphere and upward vitality.
Behind the successful issuance of this bond, for enterprises, it is a beneficial attempt to innovate financing models and broaden financing channels, which can effectively alleviate the financing problems of enterprises; For Jiangmen, it is an innovative practice to deepen the financial cooperation between Jiangmen and Macao, and it is of great significance to explore the "Jiangmen experience" for cross-border financing in our province.
Innovative financing mode provides financial guarantee for major project construction
"The funds raised from overseas bonds are flexible and can be used for investment in domestic and overseas projects." The relevant person in charge of Yinhai Company introduced that in April this year, in order to raise funds to support the construction of new energy projects, the company officially launched the issuance of overseas bonds. Through bidding, Guotai Jun'an International is the leading global coordinator for this bond issuance, and CSCI is the joint global coordinator.
In July, under the overall coordination of the State owned Assets Supervision and Administration Commission of Xinhui District, under the guidance and support of the Development and Reform Bureau of Jiangmen City and Xinhui District, the Finance Bureau, the Jiangmen Central Sub branch of the People's Bank of China and other departments, Yinhai successfully obtained the Registration Certificate of Enterprise Borrowing Foreign Debt from the National Development and Reform Commission.
Subsequently, in the preparation stage of overseas bond issuance, considering that the yield of overseas bond issuance has risen rapidly under the background of the Federal Reserve's interest rate increase, the cost of issuing foreign debt such as US dollars or euros is too high, and the company is facing a large exchange rate risk, Yinhai decided to choose the issuance method as the offshore RMB bonds in the Free Trade Zone.
As the first free trade zone bond in the province, this bond issue has been highly valued by relevant departments. "In order to ensure the smooth issuance of Yinhai Company's bonds in the Free Trade Zone, we set up special service classes with the Municipal Finance Bureau and other departments to provide policy guidance and tracking services for enterprises and banks. At the same time, we strengthened communication and coordination with the Guangzhou Branch of the People's Bank of China and studied successful cases outside the province, supported the head office and branches of commercial banks to become 'subscription investment' units, encouraged commercial banks to continue to follow up the enterprise's bond issuance plans and needs, and ensured that subscription funds arrived on schedule Bit. " People's Bank of China Jiangmen Central Sub branch said.
On October 21, Yinhai Company issued 700 million yuan of offshore RMB bonds in the Shanghai Free Trade Zone and was successfully listed on the Macao Stock Exchange with a term of three years. On the pricing day of the bonds on October 21, the peak order exceeded 860 million dollars, and the final pricing interest rate was 4.6%, 10 bps lower than the initial guidance price, creating the lowest interest rate for independent credit issuance of local state-owned enterprises with the same rating nationwide.
It is worth mentioning that the company's issuance of bonds has also obtained the green bond certification of CECEP. "The funds raised from bonds will be invested in green environmental protection projects in the region to help Jiangmen green and low-carbon development," said the relevant person in charge of Yinhai Company.
First try, first try, and make great achievements to further deepen the financial cooperation between Jiangmen and Macao
In recent years, the Municipal Finance Bureau, together with the Jiangmen Central Sub branch of the People's Bank of China, has firmly grasped the opportunity of building the bond market in Macao, issued support policies to reward enterprises that successfully issued bonds in Macao, strengthened contacts with the Macao Financial Authority and the Macao Exchange, led teams to visit and communicate in Macao for many times, created a good atmosphere of cooperation, paved the way for our enterprises to issue bonds in Macao, and promoted high-quality enterprises to issue overseas bonds, Expand the financing channels of enterprises in our city.
The successful issuance of this bond is another innovative practice of the financial cooperation between Jiangmen and Macao, which further enriched the connotation of the pilot project of overseas Chinese investment facilitation, effectively introduced overseas funds to support the construction of major projects in our city, and played a good demonstration role in building diversified channels of cross-border financing in Jiangmen City, and enhancing the confidence of domestic and foreign capital markets in Jiangmen City's investment.
"For the sake of risk prevention and control, enterprises are more cautious about raising funds by issuing overseas bonds." In fact, as early as the beginning of 2020, the financing team of Yinhai Company learned about the offshore bond business in the Free Trade Zone through brokers, but at that time, everyone was suspicious and did not dare to try. "On the one hand, enterprises are not familiar with relevant businesses, on the other hand, the fluctuation of exchange rate is difficult to predict, and it is difficult to control the financing interest rate and cost," said the relevant person in charge of Yinhai Company.
In recent years, with more and more successful cases emerging in Zhejiang, Jiangsu, Shanghai and other places, the financing team of Yinhai Company has gained more confidence in the offshore bond business in the Free Trade Zone. "Overseas bonds are more flexible in the use of funds than domestic bonds and bank loans, which can effectively enhance the financial flexibility of the company." The relevant person in charge of Yinhai said that the issuance process is also a process of continuous learning and exploration, maintaining close cooperation with underwriters and communicating at any time, so that the issuance work can be smoothly promoted.
The successful issuance of this bond has realized the breakthrough and innovation of enterprise financing mode, and played a leading role in the innovation of cross-border financing mode for large state-owned enterprises in Jiangmen City and even the whole province. "After the information about the successful issuance of overseas bonds was released, state-owned enterprises in Heshan, Jianghai and other places called one after another to learn about the relevant business and issuance process of overseas bonds," said the relevant person in charge of Yinhai.
It is reported that Yinhai Company will continue to issue overseas bonds in the future. "We plan to raise a total amount of 300 million US dollars, equivalent to about 2.1 billion yuan. If this year's financing costs meet expectations, we will issue the second issue of bonds next year, which will take into account the issuance of US dollar bonds in Hong Kong or Macao." The relevant person in charge of Yinhai said.
The relevant person in charge of the Municipal Finance Bureau said that in the next step, the Municipal Finance Bureau will strengthen the summary and promotion of the successful experience of this bond issuance, further streamline the process of issuing bonds to Hong Kong and Macao, and form a replicable path for promotion. At the same time, strengthen the contact with overseas bond issuing intermediary service agencies, strive to reduce the capital cost and time cost of foreign debt issuance by domestic enterprises, and promote more high-quality enterprises in the city to issue bonds in Hong Kong and Macao.
