On November 1, the financial bonds of the Agricultural Development Bank of China (hereinafter referred to as ADBC) were successfully issued on SZSE, with a volume of CNY10 billion. This was the first time that ADBC's financial bonds landed on the exchange market, which has further enriched the varieties of SZSE market interest rate bonds. It is of great significance to improve the capacity of the exchange bond market to serve national strategies and the real economy.
These bonds issued through the SZSE tender issue system are of two varieties, including the 1st and 2nd-tranche bonds. The 1st-tranche bonds are of a 1-year term, with a volume of CNY5 billion, an interest of 2.80% and a subscription multiple of 4.08, 12 base points lower than the valuation of the ChinaBondADBC Yield Curve. The 2nd-tranche bonds are of a 2-year term, with a volume of CNY5 billion, an interest of 3.36% and a subscription multiple of 3.98, 9 base points lower than the valuation of the ChinaBond ADBC Yield Curve. Twenty members of the underwriting group participated in the tender. Among them, securities companies underwrote 63.10%, while bank underwriters accounted for 36.90%.
As the only agricultural policy bank in China, ADBC bases on the national credit and relies on the market to raise funds for supporting agriculture. It supports the development of the "Three Rural Issues" undertakings and plays a supporting role in the national strategy. The funds raised from this issuance will be mainly used for loans for the fields related to the "Three Rural Issues" such as targeted measures for poverty alleviation, autumn grain purchase and green ecological protection supported by ADBC. Such issuance on the exchange helps the exchange market to further optimize the bond variety structure and enrich the interest rate bond categories of the exchange on one hand. On the other, it helps to broaden the issuance channels for bonds of agricultural development, promote the investor diversity for such bonds, and enhance bond liquidity.
CPC SZSE Committee attaches great importance to the cooperation and exchanges with ADBC in financial support for agriculture and bond issuance so as to continuously enrich the financial market levels and products. Next, under CSRC's leadership, SZSE will further give play to the advantages and resource allocation functions of exchange market, actively implement the policy requirements for rural revitalization and the fight against poverty, and constantly increase financial support for agriculture and poverty alleviation. We will continuously improve bond issuance services, fully support the financial bond innovation of policy banks, and promote the high-quality development of exchange bond market.
