Super Long-term Hunan Provincial Special Government Bonds Issued on SZSE

Super Long-term Hunan Provincial Special Government Bonds Issued on SZSE

Super Long-term Hunan Provincial Special Government Bonds Issued on SZSE

The FINANCIAL -- Hunan Provincial Government successfully issued CNY14.6467-billion municipal bonds by tender through the Ministry of Finance-SZSE government bond issue system. This is not only the second follow-on issue of a same municipal bond, but also the first time for a ten-billion-scale super long-term special government bond to debut on SZSE.

The municipal bonds issued by tender are of two varieties, namely, the second follow-on issue of general bonds and the super long-term special government bond, with the issue volume totaling CNY14.6467 billion. In particular, the second follow-on issue of general bonds accounts for CNY4.6467 billion and is of a five-year term, with the actual bid-to-planned issue ratio of 47.98 and the bid-winning price of CNY102.07. The super long-term special government bond accounts for CNY10 billion and is of a 20-year term, with the actual bid-to-planned issue ratio of 46.80 and the bid-winning 4.19% interest.

In terms of subscription, the bidding by all underwriters totaled CNY690.96 billion, with the actual bid-to-planned issue ratio of 47.18. Specifically, the securities broker type of underwriters showcased active subscription willingness, with their bidding totaling CNY351.56 billion, accounting for 50.88% of the total bidding. Their bid-winning amount was CNY7.47 billion, which is 51% of the total issue volume.

This bond issue is fourth time for Hunan Province to issue municipal bonds on SZSE. The second follow-on issue of a same bond successfully further weakens the bond issue fragmentation impact and improves bond liquidity. The 20-year super long-term special government bonds enrich the varieties of different terms of Hunan municipal bonds. And insurance funds are active in subscription, which makes the active investors of an exchange bond market more diversified.

Next, SZSE will continue to earnestly put into practice the working deployment of the Ministry of Finance and the CSRC to improve its issuance service. Accordingly, SZSE will constantly serve the innovative special bond varieties of local governments and help them improve the management over special bonds. In so doing, SZSE is endeavoring to contribute more to safeguard the reasonable financing needs of local governments in key areas, prevent and control local government bond risks, and support the sustainable development of local economy.