Frankfurt a.M. / Germany, March 21, 2018 – On March 20, 2018, Chengdu Xingcheng Investment Group Co., Ltd. issued the first mid-term senior unsecured Eurobonds on the China Europe International Exchange (CEINEX) market place in Frankfurt. This marks the first non-financial enterprise’s Eurobond listed on CEINEX’ EU regulated market, which is using the market infrastructure of Deutsche Börse. The Eurobond subscribed for EUR 500 million with a comprehensive coupon rate of 2.62% in two tranches: A three-year, EUR 365 million bond with an issued interest rate of 2.5% (ISIN XS1748389688) and a five-year, EUR 135 million bond with a coupon of 2.95% (ISIN XS1791714493).
The first Eurobond from Southwest China is also the first Eurobond issued by a Chinese local state-owned enterprise in 2018 and found major interest from investors from sovereign funds, investment funds, insurance companies and asset management companies in Europe and Asia. The use of proceeds is for the construction of an urban ecological project which plans to transform the City of Chengdu into a beautiful and livable park-like habitat for its citizens and visitors, and to provide Chengdu with more financial opportunities to build itself into a national central city, an international gateway & hub city, and a famous world cultural city.
Chengdu Xingcheng Investment Group is a leading enterprise in the area of infrastructure construction in Chengdu. Its main business includes improving urban traffic environment, boosting regional economic development, enhancing urban environmental quality, and creating new urban and rural forms. The Eurobonds of Chengdu Xingcheng Investment Group were subject to requirements of an EU Directive for listing bonds in the EU regulated market and was approved by German Federal Financial Supervisory Authority (BaFin) in a relatively short period of time. The successful listing of the Eurobond on the CEINEX has bridged the Chengdu with the European financial market and has also created a good beginning for state-owned enterprises from Chengdu to participate in the creation of global value chains as well as to go global and expand their global international business.
Dr. Han Chen, Co-CEO of CEINEX, welcomes the listing: “Chengdu Xingcheng Investment Group’s Eurobond provides non-financial enterprises with a model for financing in the CEINEX-EU regulated market. As a bridge between China and EU financial markets, CEINEX supplies diversified financial services to promote the corporate development and urban construction. We welcome more high-quality Chinese issuers to list bonds on CEINEX platform to optimize their financing costs, and through our platform to present promising prospects of Chinese enterprises and cities’ development to international investors.”
Mr. Ren Zhineng, Chairman of the Board of Chengdu Xingcheng Investment Group, stated: "This Eurobond is the largest direct financing of Chengdu Xincheng Investment Group , and sets the record for lowest financing costs in the open market for the group. It not only reduces the cost of capital, but also is a signal to attract global capital for the further development of Chengdu. This is an important measure for the group to allocate resources and expand markets at a higher level and to boost to build Chengdu into an international gateway and hub. In the future, Chengdu Xingcheng Investment Group will strengthen cooperation with domestic and overseas business partners and further enhance the integration into the international market as well as play a leading role in constructing Chengdu into the open upland in mainland China along ‘Belt and Road initiative’ and the international gateway hub city."
About China Europe International Exchange AG (CEINEX)
Based in Frankfurt am Main, Germany, CEINEX is a joint venture established by Shanghai Stock Exchange, Deutsche Börse Group and China Financial Futures Exchange. As the first market place for RMB- and China-related investment products in the Chinese offshore market, it acts as a unique bridge between the Chinese and international financial markets. CEINEX is dedicated to provide reliable offshore RMB- and China-related financial instruments to investors, so as to promote RMB internationalization.
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