On October 13, 2020, Shanghai State-Owned Assets Management Co., Ltd. (SSAM) issued its first-tranche super & short-term commercial paper (SCP) in 2020, with a scale of 1.5 billion yuan, a term of 180 days and a coupon rate of 1.60 percent, the lowest since the company started to issue bonds.

Bond costs have kept rising in the second half of this year due to factors such as Covid-19 and the stock market. To cope with the pressure from the rigid redemption of long-term bonds, SSAM has duly adjusted its financing strategy by issuing low-cost SCP. With the support of characteristic bond underwriting banks-Bank of Ningbo and Industrial Bank Co., Ltd., the bond was eventually issued at an ultra low rate.

The issuance, which flexibly adjusted the financing strategy to market changes while adjusting the debt structure, is SSAM's another effective practice of seeking low-cost funds from the bond market.