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On 26 May, 2017, public-issued corporation bonds of innovative startup company ’17 Improve S1’, first of its kind, listed on Shenzhen Stock Exchange, with the issuing volume of 300 million yuan, and coupon rate of 5.65 %. Its issuer, Guangzhou Improve Medical Instruments Co., Ltd., a company listed on the ChiNext, rated AA-, while the rating of the bonds being AAA. Shenzhen High-tech Investment Group Co., Ltd. provided credit-added guarantee for the bond.
SZSE earnestly implement the China Securities Regulatory Commission’s (CSRC) policy requirement on corporate bonds of innovative startup company of ‘attended by special person, audited specially, examined as soon as applied’. The examination and approval time of ’17 Improve S1’ is substantially shorter than that of the normal corporate bonds. And the financing cost of ’17 Improve S1’ is relatively lower comparing with 8 % coupon rate of the same qualified companies. The issuer issued 5-year term bond to finance 300 million yuan with low coupon rate. This example demonstrates a new way of financing source is expanded for medium-and-long-term enterprises.
Located in the national ‘double innovative’ demonstration base, Guangzhou High-tech Industries Development Zone, the issue fall into the category of biological and new medicine field that principally supported by the nation, and was certificated as national high-tech enterprise. The successful issuance of the bond encourages the innovative startup companies located in the key area to finance via issuing innovative startup enterprise bonds on the exchange, and pushed forward the precisely serving of the innovative startup companies by the capital market.
For the next step, SZSE will speed-up the process of formulating and releasing matching rules under the guidance of CSRC, advance the trial of corporate bonds of innovative startup company, give a full play to the role of the exchange’s bond market in serving the real economy, and facilitate the capital market to better serve the supply-side structural reform.
