The reporter learned from Binhai New Area Construction & Investment Group that, under energetic promotion by departments of the Municipal Finance Bureau, People’s Bank of China Tianjin Branch, etc. People’s Bank of China, as a global general coordinator, succeeded in helping Tianjin Binhai New Area Construction & Investment Group complete the first offshore bond issue of 800 million dollars. This is the first foreign bond financing by the city’s large-scale investment and financing platform in collaboration with bank and through its own relatively high credit rating, which changes previous practice where foreign financing depends on bank guarantee for credit.
According to the relevant responsible person of Binhai New Area Construction & Investment Group, the foreign bond issue has three characteristics. First, new mode. Issue structure of non-guaranteed credit is adopted, and the corporate rating results are high, all A- by three international rating agencies of Moody’s, Standard & Poor’s, Fitch Ratings, which enables Binhai New Area Construction & Investment Group to appear in the international capital market with its own credit and complete overseas bond issue with a relatively high rating, which changes previous situation where Tianjin enterprises’ foreign bond issue requires guaranteed credit such as standby letter of credit issued by bank. Second, low cost and high subscription ratio. For the 800 million USD bond, 5-year coupon rate is 4%, with issue amount of 500 million USD and subscription ratio of 4.13 times; 3-year coupon rate is 3.1%, with issue amount of 300 million USD and subscription ratio of 5.39 times. The relatively high subscription ratio and relatively low issue price greatly reduce cost of this foreign bond issue. Third, large amount. The issue amount of 800 million USD so far ranks top among foreign bond issuers in Tianjin.
The reporter learned from Binhai New Area Construction & Investment Group that, under energetic promotion by departments of the Municipal Finance Bureau, People’s Bank of China Tianjin Branch, etc. People’s Bank of China, as a global general coordinator, succeeded in helping Tianjin Binhai New Area Construction & Investment Group complete the first offshore bond issue of 800 million dollars. This is the first foreign bond financing by the city’s large-scale investment and financing platform in collaboration with bank and through its own relatively high credit rating, which changes previous practice where foreign financing depends on bank guarantee for credit.
