Xinhua Finance｜"Railway Bonds" Are Initially Issued on the SSE and Gain Popularity Among Institutions

This week, China State Railway Group Co., Ltd. ("China Railway") successfully issued its construction bonds by tender on the Shanghai Stock Exchange (SSE), marking its debut in the bond market.

It is reported that the bonds raised a total of 10 billion yuan, comprising 5-year bonds with an issuance amount of 5 billion yuan, a subscription multiple of up to 4.04 times, and a coupon rate of 1.8%. The 30-year bonds have an issuance amount of 5 billion yuan, with a subscription multiple of up to 4.16 times and a coupon rate of 2.2%. "The market has responded very positively to this issuance, as evidenced by the subscription results. The subscription multiple and coupon rate are at historically favorable levels, which clearly demonstrates the strong confidence and high recognition the market holds for China Railway," according to several investment institutions. Notably, diverse investors participate in the issuance of "railway bonds" on the SSE, including commercial banks, insurance institutions, securities traders' self-operated institutions, and fund companies. It is understood that to further enhance the liquidity of "railway bonds", the SSE will also organize market makers to actively carry out the market making of these bonds and enhance their investment value.

The reporter noted that the tens of billions of funds raised through this "railway bond" issuance will all be used for railway project construction to enhance China's transportation infrastructure. In addition, the issuance quota for China Railway construction bonds registered by China Railway has reached 300 billion yuan. This bond marks the initial issuance under this approval and will continue to be issued in the future.

To ensure the smooth issuance of these "railway bonds", the SSE fully leveraged its market organization function and made effective system arrangements and debugging to successfully complete the issuance and underwriting work as expected.

From Xinhua Finance on December 11, 2024

See Full Article at:https://bm.cnfic.com.cn/sharing/share/articleDetail/291751967649521664/1

The above information is provided for reference purposes only and does not constitute investment advice.