Guided and supported by the National Development and Reform Commission (NDRC), the Shanghai Municipal Development & Reform Commission and the Shanghai Municipal State-owned Assets Supervision and Administration Commission, Shanghai International Group (SIG) issued its first-tranche corporate bonds in 2019 on October 21.

This tranche of bonds is SIG's first direct financing after its return to the capital market eight years later, as well as the first tranche of the outstanding enterprise bonds of 20 billion yuan approved by NDRC. With a scale of 2.2 billion yuan and a term of 5 years (attached by the issuer's option to adjust the coupon rate and investors' redemption option at the end of the 3rd interest bearing period during the term of bonds). In a book building period of 2 hours, tens of financial institutions, including banks, trust companies, fund companies and securities companies, invested a total of 5.99 billion yuan, a subscription ratio of 2.72 and a final coupon rate of 3.35 percent. SIG's current bond issuance interest rate is the lowest-ever interest rate of outstanding enterprise bonds with the same term approved by NDRC, hitting a record low interest rate of 3A local state-owned enterprises with the same term in the market since 2017. It fully shows SIG's important influence in the capital market, as well as the market's high recognition of SIG's 3A credit rating.

Guotai Junan Securities is the lead underwriter of this tranche of bonds; Shenwan Hongyuan Securities, Citi Orient Securities and Shanghai Securities are the co-lead underwriters. The fund raised from this tranche of bonds will contribute to Yangtze River Delta Collaborative Advantageous Industry Fund and other government industrial investment funds, focus on fields such as the integration of the Yangtze River Delta and advanced manufacturing, and further serve major national and municipal strategies.

SIG has persistently served the overall interests of the reform and opening-up of China and Shanghai, stuck to innovation, transformation and development, implemented the "dual engine" strategy (state-owned capital operation and investment management), firmly grasped the key means of capital management, kept enhancing the guiding force, control force and competitiveness of state-owned capital, focused on serving the building of Shanghai into "five centers", the promotion of "four brands" and the advancement of three major tasks, and made positive contributions to Shanghai’s effort to continue to be a pacesetter in the reform and opening-up and a forerunner in innovative development.