The First Batch of “Small Public Offering” Corporate Bonds Got Listed on SZSE

The First Batch of “Small Public Offering” Corporate Bonds Got Listed on SZSE

The First Batch of “Small Public Offering” Corporate Bonds Got Listed on SZSE

The FINANCIAL -- On July 23 2015, the 2015 corporate bonds, which were issued by Hunan Gold Corporation Limited and RiseSun Real Estate Development Co., Ltd. via public offering to qualified investors including financial institutions and their products, ordinary institutions with qualification and natural persons with high net-worth, successfully got listed on Shenzhen Stock Exchange. Having undergone the pre-review of SZSE as authorized by CSRC and the approval of CSRC , “15 Hunan Gold 01” and “15 RiseSun 01” are the first batch of “small public offering” bonds issued after the promulgation of the Management Measures for Issuance and Trading of Corporate Bonds by CSRC.

The issuing volume of the 3-year term “15 Hunan Gold 01” is RMB 0.3 billion with AA+ ratings for both the issuer and the bonds. Guotai Junan is its lead underwriter, and 7 institutions or products have participated in the offline subscription. “15 Hunan Gold 01” is issuing at a coupon rate of 4.5%, much lower than the three-year benchmark lending rate of 5.25%. The issuing volume of the 5-year term “15 RiseSun 01” is RMB 1.8 billion with AA+ ratings for both the issuer and the bonds. J.P.Morgan is its lead underwriter, and 18 institutions or products have participated in the offline subscription. “15 RiseSun 01” is issuing at a coupon rate of 5.78%, lower than the company’s loan and financing cost and helping to stabilize its financial structure, according to Shenzhen Stock Exchange.

In order to support the implementation of the Management Measures for Issuance and Trading of Corporate Bonds, SZSE has made corresponding amendments to the Procedures for Pre-reviewing the Listing of Corporate Bonds, Listing Rules for Corporate Bonds and other supporting rules, so as to further streamline the pre-review and listing procedures and improve the information disclosure system. Under the new rules, the issuance applications of “small public offering” bonds will not directly go to CSRC, but will be pre-reviewed by the exchanges, and then CSRC will consider to simplifying the approval procedures on the basis of the pre-review opinions of the exchanges.

The pre-review period within SZSE will be no longer than 20 business days in total. Meanwhile, in order to put the supervisory concept of “taking information disclosure as the core” into practice, SZSE will further enhance the transparency degree of the pre-review work of “small public offering” bonds by means of making the progressing schedule and documents public not only to the issuers and underwriters but also the public community.

For the next step, SZSE will continue to optimize the pre-review, issuance and listing of “small public offering” bonds, increase the quality and efficiency of services, endeavor to provide different types of financing subjects with differentiated, elaborative, oriented services, provide issuers with financing channels of high efficiency and low cost, and propel the orderly and healthy development of the SZSE bond market.