Time:2013.01.31
On January 15, 2013, National Development and Reform Commission officially approved Chengdu Xingcheng Investment Group Co., Ltd. to issue enterprise bonds of RMB 2 billion. The capitals of RMB 2 billion raised by the issuance of enterprise bonds will be fully funded on January 31, 2013 and mainly used for the construction of major infrastructure projects. The current “13 Rongxingzhai” Bond is a kind of real-name registered enterprise bond with maturity of 7 years and fixed rate of 6.17% which has obvious cost advantage compared with the benchmark interest rate for contemporaneous bank loan (6.55%) (0.38% lower than such bank loan). The issuance of enterprise bond reflected the breakthrough made by Chengdu Xingcheng Group in its capital market financing work, and was the result of continuous optimization of the Group’s capital structure and financial condition. Bond issuance and fund raising will lay a solid foundation for the Group to better accomplish various tasks assigned by Chengdu Municipal Committee and Municipal Government.
