With a coupon rate of 1.625%, the initial issue was well-received by the market with nearly 4 times of oversubscription

On April 30, Yuexiu Transport Infrastructure Limited (hereinafter referred to as “Yuexiu Transport”) announced the successful issue of a 3-year bond in an amount of 200 million Euros, with a coupon rate of 1.625%.This is the first time that the company has issued corporate bonds overseas, which were well-received by the market.The company has reduced the price guideline from the initial MS+1.75% to MS+1.58%, 17 base points lower. The final total subscription amount is approximately 783 million Euros, nearly 4 times of the total issue amount.The low coupon rate of the corporate bond issued this time reflects the market’s recognition and confidence in the company’s operating and financial status as well as future development.

This issue of Euro bonds proves that Yuexiu Transport has the same unique vision and foresight of international capitalists.With the guidance and support from the parent company Yuexiu Group, the management of Yuexiu Transport has decisively and successfully issued the bond when the Euro exchange rate was at a relatively high level recently, by seizing the opportunity that Europe is implementing a loosened policy and entering a major cycle of “negative interest rate”, and based on the trend that the Euro exchange rate will be weak in the long run but rebound slightly in the short run.By virtue of a successful market promotion strategy, the company has effectively seized market opportunities and stood out from the numerous Chinese companies that are financing from the European market, thereby laying a foundation for the successful issue of corporate bonds at a low cost.

Bank of China Limited, Bank of China (Hong Kong) Limited, BOC International Asia Limited, Hong Kong and Shanghai Banking Corporation Limited, J.P. Morgan Securities plc, Nomura International plc, and Yuexiu Securities Co., Ltd. are the joint leading banks for this bond, where the first six companies also serve as the bookkeeping banks.

Previously, the company established a Medium Term Note Issue Plan (hereinafter referred to as “MTN Plan”) with a total amount of no more than 1 billion USD. As the first bond issued under the 1 billion USD MTN Plan established by the company previously, the bond issued this time received the “Baa2" rating by Moody’s, and the “BBB-" rating by S&P and Fitch. With the issue of this Euro bond, Yuexiu Transport has created several “first” records: It is the first listed company under the parent company to successfully issue an Euro bond; it is the first Hong Kong-listed expressway company to establish an MTN plan; it is the only company among the 20 mainland and Hong Kong listed expressway companies to successfully issue an Euro bond overseas so far; it is the first Chinese company which does not have an A rating but has successfully issued an Euro bond at a preferential interest rate.

With this bond issue, Yuexiu Transport has successfully transformed its debt financing model from bank loan only to a combination of bank loan and bond financing, thereby further consolidating the diversified financing platform, increasing the diversity of the financing channels, and optimizing the overall financing structure with respect to currency and cost.

Chairman Zhang Zhaoxing of Yuexiu Group said: “The Euro bond financing this time is the first of the whole group, and is well-received by the bond market, which shows that Yuexiu Transport has earned the recognition of the market by virtue of its business features and good and stable operating status.”