On August 28, the Export-Import Bank of China (EIBC) successfully issued by tender RMB5 billion of policy financial bonds on the bond issuance system of the Shanghai Stock Exchange (SSE), and it is the first time that the EIBC has issued the policy financial bonds on the SSE.
The issuance includes the 1-year and 3-year bond products, which are worth RMB3 billion and RMB2 billion respectively, and are underwritten by 22 commercial banks and 9 securities companies. The results of the issuance show that the issuance interest rate of the 1-year bonds is 2.35%, with the subscription multiple at 4.57 times; the issuance interest rate of the 3-year bonds is 2.92%, with the subscription multiple at 4.96 times. Among the underwriting groups, the banking institutions won a bid of RMB1.92 billion, accounting for 38.40% of the total, and the securities companies were awarded a bid of RMB3.08 billion, accounting for 61.60% of the total. The active response of the market institutions highlighted that the EIBC’s entry into the SSE bond market was well received by the market institutions.
As a state-owned policy bank, the EIBC energetically serves the national strategies, supports China's foreign economic and trade investment and development and the international economic cooperation, and plays an important role in the growth stabilization, the structural adjustment, the “going global” strategy, the “Belt and Road” construction and other areas. The funds raised from the bond issuance will all be used for the EIBC’s lending of credit loans.
In recent years, the SSE has attached great importance to the interest rate bond market and, and it has served as an important issuance venue for local government bonds and policy financial bonds with the guidance and support of relevant ministries and commissions. The successful issuance of the policy financial bonds of the EIBC will, on the one hand, help to optimize the structure of the products on the SSE bond market, enrich the interest rate bond products on the SSE and push the exchange-traded bond market to play an important role in serving the “Belt and Road” construction and the real economy. On the other hand, it will broaden the channels for the issuance of policy financial bonds by the EIBC, and conduce to making the investors more diversified and improving the bond liquidity.
Going forward, the SSE will, under the leadership of the China Securities Regulatory Commission (CSRC), make effective efforts in the issuance of policy financial bonds on the exchange, continue to improve the service for bond issuance, vigorously promote the further expansion of the policy financial bonds, accelerate the innovation in policy financial bond products, constantly enrich the levels of and the products on the financial market, and boost the high quality development of the exchange-traded bond market.