CCDC Shanghai HQ Successfully Supported the First Global Issuance of Exim Bank “Bond Connect” Green Financial Bonds
On December 22, approved by the People's
Bank of China, China Exim Bank (hereinafter referred to as Exim Bank),
successfully issued a green financial bond of RMB 2 billion to domestic and
overseas qualified “Bond Connect” investors at CCDC Shanghai headquarters. This
is the first “Bond Connect” green financial bond issued by the Exim Bank and
the first book-building issuance of green financial bonds to global investors
in a market-oriented manner. Leaders from People's Bank of China Shanghai Headquarters,
officials from Shanghai Financial Service Office, Wang Kai, general manager of
the Fund Operation Department of the Exim Bank, and Liu Baishu, vice president
of CCDC, witnessed this historic moment.
The bond has a maturity of three years and
all funds raised will be used for green industry projects, including, in
particular, the development of clean energy applications in the Belt & Road
Initiative related countries and the promotion of global Green Belt & Road Initiative.
Thanks to the active subscription from Bank of China Singapore Branch and investors
from Hong Kong SAR and some European countries, the final subscription multiples
reached 3.46, and the allotment rate was 4.68%, 9 bps lower than the valuation
of the bonds of same maturity as suggested by ChinaBond Pricing Center.
Agricultural Bank of China, Bank of China, CITIC Securities, China Merchants
Securities, Bank of Luoyang, Bohai Securities were the joint principal
underwriters, and China Merchants Securities served as the bookrunner.
has been actively taking on the national strategy and constantly promoting
business innovation. It provided technical support and integrated service to
the issuance of the bonds. This is the first global bond issuance supported by
CCDC Shanghai Headquarters since its establishment. For Shanghai HQ, the
successful issuance has many significance. First, it shows that Shanghai HQ is
leveraging the core financial infrastructures to conduct safer, more efficient
and more orderly business operations and effectively reduce the risk of
cross-border bond business. Secondly, it shows that Shanghai HQ is actively
exploring various channels of cross-border business to promote innovation in
cross-border issuance and provide more access for domestic and foreign market
participants to China's financial markets. Thirdly, based on the local market, Shanghai
HQ can effectively link global issuers and investors to further strengthen
Shanghai's position and voice as an international financial center with respect
to international financial assets pricing, clearing and settlement.