The Issuance of Sci-tech Innovation Bonds Is Gaining Momentum, with Equity Investment Institutions Entering the Market at an Accelerated Pace
Translated from Xinhua Finance, by Yang Yiren
The deep integration of sci-tech innovation and financial capital has become a key driver of high-quality development. The pace of issuing sci-tech innovation bonds under the "Science and Technology Board" of the bond market has accelerated significantly, with issuers such as equity investment institutions entering the market at an accelerated pace.
The issuance of sci-tech innovation bonds is gaining momentum
Data indicates that between May 6 and 15, 2025, 85 sci-tech innovation bonds (sci-tech innovation notes) with a total scale of approximately 135.8 billion yuan were intensively issued. These issuances involved central and state-owned enterprises as well as private enterprises across various industries such as new materials and information technology. The issuance period is primarily medium to long-term, with over 60 bonds having maturities of 3 years or more. The issued sci-tech innovation bonds are characterized by low coupon rates (generally around 2% annually) and high subscription multiples.
Many equity investment institutions have leveraged sci-tech innovation bonds to drive innovation and development. Shanghai Pudong Innotek Capital Co., Ltd. has leveraged low-cost, long-term capital to invest in over 20 direct investment projects and related funds in cutting-edge fields such as integrated circuits. This has not only increased the visibility of sci-tech innovation enterprises but also broadened its own financing channels. Since 2023, Wuxi Industry Development Group Co., Ltd. has issued six sci-tech innovation bonds, with four achieving national first-issue records. The 5 billion yuan raised has been allocated to integrated circuits, commercial aerospace, and other sectors. Shanghai Zhangjiang Science & Technology Venture Capital Co., Ltd. has issued four phases of sci-tech innovation bonds amounting to a total of 2.2 billion yuan. Over 1 billion yuan has been utilized for direct investment in more than 20 sci-tech innovation enterprises, while nearly 600 million yuan has been deployed in fund investments focusing on Zhangjiang's advantageous industries.
Favorable policies drive equity investment institutions to accelerate their market entry
The issuance of sci-tech innovation bonds by equity investment institutions has been recognized by management for its critical role in driving sci-tech innovation. This round of policy implementation has effectively reduced the cost of bond issuance for financing. Since 2024, the benchmark interest rate has been on a downward trend. The weighted coupon costs of sci-tech innovation corporate bonds and notes have decreased by 0.88 and 0.72 percentage points, respectively, compared with 2023. The issuance cost is anticipated to further decline in 2025.
Several institutions are actively planing their future layout. Xi'an High-tech Industry Venture Capital Co., Ltd. has innovatively issued bonds for "sci-tech innovation + micro, small, and medium-sized enterprise support", pioneering a model that features "bond market fundraising + equity investment", aiming to establish a closed-loop system of "policy guidance-capital infusion-industrial empowerment". Wuxi High-tech Zone Venture Capital Holding Group plans to establish a multi-tiered investment matrix through sci-tech innovation bonds, empowering hard technology industries such as artificial intelligence, the low-altitude economy, and integrated circuits. Shanghai Pudong Innotek Capital Co., Ltd. also aims to deepen its sci-tech innovation bond services, facilitate the synergy among technology, capital, and industry, and contribute venture capital efforts towards "enhancing new quality productive forces".
From May 7 to 14, 14 equity investment institutions completed the issuance of sci-tech innovation bonds, while 11 institutions completed the registration for bond issuance, with an amount of about 20 billion yuan, covering multiple provinces and municipalities. Under the dual impetus of policy and market forces, sci-tech innovation bonds are poised to exert a more significant impact on sci-tech innovation and industrial upgrading.
The above information is provided for reference purposes only and does not constitute investment advice.