Successful Issuance of 2019 Phase II Mid Term Notes by Yuexiu
Release Date:2019-08-01 14:57:46

On July 26, the Group successfully issued 2019 Phase II mid-term notes in the amount of RMB 1 billion. Term thereof is 3 years, and the nominal interest rate is 3.61%, which is lower than average interest rate of mid-term notes issued by Grade AAA local state-owned enterprises since July for more than 40 BP.

On around April 19, 2019, long-term interest rate was rapidly ascending, then stopped, and steadily declining after reaching the peak of this year. Impacted by the “heavy tax burden” of July, currently the short-term interest rate is rising again, but the long term one are still tumbling slowly. The Group kept close watch of the market, managed to catch the market window when the expiry of mid-term notes quota is approaching, and smoothly completed issuance on July 26.

The issuance welcomed acceptance and popularity from the market. The statistics indicated that the 3.59 times of subscription has been obtained, the accumulatively effective amount of which reached 3.59 billion. The final issuance costs would be fixed at 3.61%, with the marginal multiple at 1.48 times. With successful issuance of the mid-term notes, the Group has optimized its general debt structure, and laid down solid foundation for consecutive development.