The Agricultural Development Bank of China (ADBC) successfully issues the policy-related financial bonds of RMB10 billion through the bonds issuance system of the Shanghai Stock Exchange (SSE) on May 9. This is the first time that the ADBC issues the policy-related financial bonds on the SSE.
The bonds are of 1-year term and 3-year term, respectively, each of RMB5 billion. The underwriters are 15 commercial banks and 5 securities companies. According to the issuance result, the interest rate of the 1-year bonds is 2.63%, 25 base points lower than the assessed value of the same-period bonds the day before, and the subscription rate is 7.5 times; the interest rate of 3-year bonds is 3.28%, 15 base points lower than the assessed value of the same-period bonds the day before, and the subscription rate is 6.7 times. In the underwriting group, the banks and the securities companies won the bidding of RMB7.9 billion bonds and RMB2.1 billion bonds, with the proportions of 79% and 21%, respectively. The positive responses from the market institutions have demonstrated their earnest welcome to the ADBC entering the SSE bonds market.
As an agricultural policy bank in China, the ADBC has spared no efforts to serve national strategies and support the reform and innovation in “agriculture, rural areas and rural residents”. The raised funds of the above bonds will be used in the key areas related to the rural revitalization strategy, including the loans related to “agriculture, rural areas and rural residents” and the loan delivery for small and medium-sized enterprises and the private economy.
In recent years, the SSE has paid great attention to the interest-rate bonds market, and it has become the major tender and issuance site for policy-related financial bonds and local government bonds under the guidance and support of relevant ministries and commissions. The successful issuance of the policy-related financial bonds by the ADBC will help to optimize the product structure of the SSE bonds market and enrich its interest-rate debt varieties on one hand, and expand the issuing channel of agricultural development bonds and propel the diversity of its investors on the other hand.
Next, under the leadership of the China Securities Regulatory Commission, the SSE will well manage the issuance of policy-related financial bonds, continue to improve the service for bonds’ issuance, accelerate the product innovation in policy-related financial bonds, and further display the exchange-traded bonds market’s role of serving the real economy, with an aim of building a high-quality bonds market.