CICC, acting as the Lead Global Coordinator, Lead Manager and Bookrunner, successfully assisted Chengdu Xingcheng Investment Group Corporation Limited (“CXIG” or the “Issuer”) in completing its EUR 500 million dual-tranches bonds issuance on March 13th, 2018 (the “Issuance”). It is the second offshore bond issued by CXIC following its debut USD bond issuance in 2016, which represents the first USD bond issued by a Sichuan enterprise.  The Issuance is the first EUR offshore bond issued by SOEs in Southwest China, and has also been the first time for bond issued by a PRC non-FI enterprise to be listed on both the Frankfurt Stock Exchange and China Europe International Exchange. Such Issuance is a new landmark transaction led by CICC with strong influence to the market and allows the issuer to realize both favorable funding cost and significant market influence.

Established in March 2009, CXIG is a state-owned company directly and wholly owned by Chengdu SASAC. As the key investment and financing platform in Chengdu, the Company plays an integral part in implementing the local government’s blueprint for urban planning, construction and development with a focus on Chengdu’s southern and eastern regions. It is running 5 business segments including infrastructure construction, primary land development, affordable housing development, property development, property leasing and management. As of 30 June 2018, CXIG has achieved the development of approximately 82.0 km of urban roads, 1.3 million sq.m. of major property construction, 3.5 million sq.m. of lakes in major parks, more than 4.0 million sq.m. of greening development projects and 3.4 million sq.m. of new rural community housing. It has also developed 8.1 million sq.m. of affordable housing and 3.4 million sq.m. of commodity housing.

CICC, acting as the Lead Global Coordinator, successfully assisted CXIG with communication with multiple European Regulators like Bundesanstalt für Finanzdienstleistungsaufsicht (“Federal Financial Supervisory Authority” or “BaFin”). During the communication CICC helped CXIG to break through a series of obstacles due to different regulatory frameworks, differences in accounting standards, cultural backgrounds, and in time zone. And after accepting the European standardization process, the Company was finally accredited by all the regulators. Such achievement laid a solid foundation for the Issuance.

As the interest rate is keeping rising worldwide recently and the offshore market is volatile fluctuated, investors have become overcautious and prudent on their investment policy. Under such circumstances, CICC has successfully and efficiently assisted the Issuer in completing the related due diligence, documentation preparation and BaFin’s document review prior to the issuance and organized roadshow to Hong Kong, London and Frankfurt. The Issuer has met dozens of high-quality investors coming from the most famous sovereign funds, fund managers, insurance, and banks. As a result, those leading fund managers and banks in London and Frankfurt stay in final book and get well allocated, which shows the appreciation from Euro investor to the issuer. The issuance has met the client’s expectation in terms of size, tenor and pricing and the credit highlights of the Issuer and Chengdu have also been well publicized in European capital markets.

CICC, acting as the Lead Global Coordinator and Joint Bookrunner of the transaction, took over the whole execution process including credit rating review, obtaining regulatory approval, offshore regulatory communication, due diligence, documentation, marketing and roadshow arrangement, etc. The transaction has further solidified the leading position of CICC in the international capital markets.