On September 18, 2018, CICC, acting as the Global Coordinator and Rating Advisor, assisted Shenzhen Investment Holdings Co., Ltd (“the Company” or “SIHC”) to successfully complete its debut bond issuance in the international capital market; the USD 400mm 3-year senior fixed-rate USD note at a coupon of 3.95% and USD 300mm 5-year senior fixed-rate USD bond at a coupon of 4.35% (“the issuance”). This issuance broke the record for the largest debut issuance size by Chinese issuer this year and lowest credit spread by recent local SOE issuances, setting another landmark transaction in the international capital market for deals to follow.

SIHC, wholly-owned by Shenzhen SACAC, is the largest stated-owned enterprise with the strongest profitability in Shenzhen. As of June 30, 2018, the Company has 38 consolidated subsidiaries (8 of which are listed companies) and 37 non-consolidated subsidiaries (4 of which are listed companies), with a total assets of around RMB 500bn, an average annual revenue of around RMB 50bn, and an average annual net profit of around RMB 20bn. As Shenzhen’s platform of technology innovation and industries fostering, SIHC targets to build the core three segments of Tech-Finance, Science and Technology Park, and Industrial Investment, to establish a comprehensive system for industries innovation to provide services for the full life-cycle of technology innovation companies. In the future, SIHC aim to build a “Circle Progression” science park ecosystem to lead and create a “Four-in-One” business model revolving “Science and Technology Park + Tech-Finance + Listing Platforms + Industrial Groups” to enhance the synergy and coordinate development  of the Guangdong-Hong Kong-Macau Greater Bay Area scheme. SIHC will continuously advance its modernization corporate management policies with specialized focus to improve on industry structure feasibility, business model management, system synergy enhancements, and enterprise management systems; the Company will become a world-class state-owned capital operation company and integrated financial holding group.

CICC, acting as the Rating Advisor, successfully assisted SIHC to achieve its debut A+ issuer rating and bond rating. This issuer rating is very significant, and it’s equivalent to China’s sovereign rating grade, which symbolizes the highest rating grade that any Chinese company can achieve. The impressive rating result laid a solid foundation for the success of the following bond issuance. In addition, CICC accompanied SIHC’s management team to complete the roadshow and met with more than 100 recognized investors to conduct comprehensive, effective, and objective communication to emphasize on the Company’s strong credit profile. CICC, as the leading docs bank, supervised the drafting of the transaction documentations, conducting due diligence, and coordinating the working group to complete the key execution work in timely manner and to grasp the optimal issuance window. The issuance is not only the debut launch for Shenzhen local SOE to market in the international debt capital market, but also both the issuance size and yield outperformed the other comparable companies. Overall, the Company was exceedingly satisfied with the issuance results as it also enabled the Company to diversify its future funding channels.

This dual-tranches debut bond offering attracted overwhelming attentions from global investors. Within the first hour after the book open, the transaction received orders exceeding USD 1.5bn and the total orderbook size peaked at USD 4.0bn, representing a five times over-subscription. The final orderbook contains more than 128 investors from 17 countries, including prestigious sovereign funds, insurance companies, banks, and asset managements from Europe and Asia. The yield on the transaction is lower than the secondary trading level of comparable issuers’ bonds with similar ratings. In addition, the bond’s secondary market prices were at an increase on the first day trading, illustrating the great recognitions and demands from international investors to support the credit. This deal, once again, solidifies CICC’s leading status in the global fixed-income capital market.