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 of corporate bonds (the "current tranche") in 2020 on December 11.

With a scale of 2 billion yuan, 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), a subscription ratio of 1.1 and a coupon rate of 3.46 percent (a low interest rate level among bonds issued by similar enterprises in the second half of 2020), the current tranche is the second tranche of the outstanding enterprise bonds of 2 billion yuan approved by NDRC.

During issuance preparation, several events of material default on 3A credit bonds occurred in the secondary bond market, which led to an increase in the difficulty in issuing bonds in the primary market. Facing the sudden deterioration of the external financing environment, SIG made elaborate preparation for the issuance when the People's Bank of China intensified open market operations to release liquidity to hedge the negative impact of default events, and resolutely seized the favorable opportunity to issue bonds through book building, with the final coupe rate and the credit spread both at healthy levels. The successful issuance shows the market fully recognizes SIG's credit, market image and investment orientation.

The raised fund will be invested in four government-funded industrial investment funds such as Integrated Circuit Industry Fund, Guotai Junan FoF and Shanghai Biopharmaceutical Industry Fund, to further enhance SIG's influence and brand effects in the private equity industry, improve its capability of serving major national and municipal strategies, and steadily advance the "dual engine" strategy of state-owned capital operation and investment management led by financial holding group building.