On February 25, 2021, China Development Bank Financial Leasing Co., Ltd. (“CDB Leasing” or the “Company”, Issuer Rating A/A1/A+ (S&P/ Moody’s/ Fitch)) successfully completed its issuance of 3-year 1.375% coupon USD500 million and 5-year 2.000% coupon USD500 million Senior Fixed-rate Notes (the “Issuance”), with an issue rating of A2/A+ (Moody’s/ Fitch). CICC acted as the Joint Global Coordinator and Joint Bookrunner in this issuance.

The Issuance accurately seized a favorable issuance window at an overall low interest rate of the offshore debt capital market with stable macroeconomic environment. It has also aroused a positive market response and achieved outstanding results. When the final price guidance was released, the orderbook reached over USD4.0 billion, which represents 4x over-subscription.  

About CDB Leasing

Established in 1984, CDB Leasing is a national non-banking financial institution regulated by CBIRC and an important subsidiary held by China Development Bank. The Company is also one of the first leasing companies established in the PRC, the first listed financial leasing company in mainland of China, and the sole leasing business platform and listing platform of China Development Bank, which endows it with a critical strategic position in the parent bank. Benefiting from its strong financial power and professional operational skills, the scale of leased assets continues to grow and its profitability continues to improve in recent years. In particular, the Company has significant brand influence and professional advantages in the aviation ad infrastructure leasing realm, and is in the leading position in the domestic leasing industry, especially in the operating leasing realm. 

As a Global Coordinator in the Issuance, CICC explored diversified and high-quality investor orders and contributed a large number of high-quality cornerstone orders at the beginning of the book opening on the pricing date, which set off the atmosphere for the book building and made outstanding contributions to the ideal results. Under the favorable window of market stability after the Spring Festival, the project has achieved excellent issuance results and aroused positive market response, which guided the pricing direction. The final pricing of the 3-year USD500 million bond was T3+115bps, tightened 40 bps from the initial price guidance of T3+155bps area. The final pricing of the 5-year USD500 million bond was T5+130bps, tightened 35 bps from the initial price guidance of T5+165bps area. The pricing of bonds of different maturities was significantly tightened, assisting the Company to achieve low-cost financing. 

The transaction is also the first cooperation between CICC and CDB Leasing regarding the offshore capital market. With its professional team and services, CICC has gained recognition from the Company, which not only contributes to the subsequent development of CDB Leasing, but also demonstrates the excellent service capability of CICC in the financial leasing industry. The Issuance has laid a solid foundation for the future cooperation between CICC and CDB Leasing.