On May 29, the Guangdong Provincial Government successfully issued CNY47.013-billion municipal bonds by tender through the Ministry of Finance-SZSE government bond issue system. Among them, CNY17.514-billion special bonds are for the Greater Bay Area, which marks the official landing of the first batch of its kind in the country in 2019. This is SZSE's active exploration to further implement the Outline of Guangdong-Hong Kong-Macao Greater Bay Area Development Plan, continue to promote the innovation of fixed-income products and facilitate the construction of the Greater Bay Area.
The 8-tranche special bonds for the Greater Bay Area issued this time total CNY17.514 billion, raising funds mainly for the land reserve and infrastructure interconnection construction in relevant cities such as Foshan, Jiangmen, Huizhou, Zhaoqing and Zhongshan. They are of great significance to promote the construction of key urban agglomeration projects in the Greater Bay Area, improve its ecological environment and promote its sustainable and high-quality development. These bonds include various durations, including long-term bonds of 10, 15 and 20 years for the first time, which better matches the long-term capital needs of the Greater Bay Area construction. The bid-winning interest rate for the 5-year term bonds is 3.38%, while 3.60% for the 7-year term bonds, 3.57% for the 10-year term bonds, 3.88% for the 15-year term bonds, and 3.91% for the 20-year term bonds. For the subscription of these bonds, all underwriters made active subscription, with a total bidding of CNY190.61 billion and a full-house average subscription ratio of 10.88. The bidding by securities companies totaled CNY103.38 billion, accounting for 54.24% of the total bidding. Their bid-winning amount was CNY677 million, accounting for 3.87% of the total issue volume.
SZSE has long been committed to providing all-round and full-process customized services for the municipal bond issuance by issuers of various provinces, municipalities and autonomous regions, so as to meet local governments' reasonable financing needs and support the sustainable development of local economies. Up to now, local government bonds of a total of CNY1.33 trillion have been issued on SZSE, covering 25 provinces, municipalities and autonomous regions. Next, SZSE will continue to deepen financial cooperation with local governments, optimize service levels, promote product innovation, and give full play to its functions as a multi-tiered capital market platform, so as to facilitate the high-quality development of local economies.
