Geely Holdings, a leading Chinese automotive company, has made history by successfully issuing 2 billion yuan ($309 million) worth of technological innovation corporate bonds on the Shanghai Stock Exchange. This makes it the first private enterprise bond to be included in the benchmark market-making variety of corporate bonds.
The issuance, with a term of 3 years and a coupon rate of 3.54%, aims to optimize Geely Holding’s corporate debt structure and provide stable medium and long-term financial support for its future business development.
The company had obtained approval for 15 billion yuan ($2.3 billion) of corporate bonds in December last year and opened up the exchange bond issuance channel. It achieved its first issuance in June this year. The issuance of science and technology bonds not only expands Geely Holding’s market-oriented financing channels but also aligns with its focus on achieving sustainable financing through active engagement with investors.
During the bond issuance process, the Shanghai Stock Exchange provided various financing support services, including guiding Geely Holding to strengthen information disclosure and respond to institutional investor demands. The exchange also facilitated investor engagement by organizing surveys and online communications. In addition, the bond was included in corporate bonds benchmark market-making varieties, encouraging market makers to provide secondary trading liquidity support and reduce issuer financing costs.
Various diversified investment institutions actively participated in the subscription process, including bank financial management, bank self-operation, public funds, and brokerage self-operation.
Geely Holding’s successful bond issuance is significant for its ability to grasp the new development pattern of technological transformation and ecological synergy, focusing on intelligence and electrification as core drivers. The funds raised will serve as a financial guarantee to support the company’s future growth.
The lead underwriter for this bond issuance was China International Capital Corporation (CICC). The company expressed its satisfaction with the process, highlighting the financing support services provided by the Shanghai Stock Exchange.
Overall, Geely Holding’s milestone issuance on the Shanghai Stock Exchange is a testament to the company’s commitment to innovation and its strategic approach to accessing diverse financing channels. It will undoubtedly contribute to its continued growth and success in the automotive industry.
Disclaimer: This article was sourced from Securities Times.com and is published by Oriental Fortune for informational purposes only. It does not constitute investment advice, and readers are advised to proceed with caution and at their own risk.