CICC, acting as Sole Rating Advisor, Sole Global Coordinator, Sole Lead Manager and Sole Bookrunner, successfully assisted Chengdu Communications Investment Group Corporation Limited (“CCIC” or the “Issuer”) to complete its debut bond issuance of 10-year 4.750% Coupon USD 300 million Senior Unsecured Notes on December 6th, 2017 (the “Issuance”). The Issuance is the first 10-year USD bond issued by a enterprise in Sichuan Province in the international capital markets. This issue has successfully locked up competitive financing costs by grasping the market window when the USD benchmark curve is relatively flat and opened up a new financing channel for the Issuer, the Issuance allows the issuer to realize both favorable funding costs and significant market influence.

Established in March 2007, CCIC is a state-owned company directly and wholly owned by Chengdu SASAC. It acts as the only wholly state-owned investment and financing platform in the transportation sector in Chengdu, and plays a key role in investing, financing, developing, constructing, operating and managing transportation infrastructure projects in Chengdu. The Company has formed six business segments including one core business segment (transportation) and five derivative business segments (tourist transport, intelligent traffic, smart parking, energy and resources). As of 30 September 2017, the Company held equity interest in 62 companies and has undertaken 247 governmental investment projects, including the construction of the Chengdu Tianfu New Airport, the expansion and renovation of the Chengdu North Railway Station in Chengdu.

CICC, acting as Sole Rating Advisor, successfully assisted CCIC to achieve BBB + from Fitch , with stable outlook. The rating is one of the highest credit ratings ever for enterprises in Chengdu. The rating demonstrated the strong credit profile of both the Company and Chengdu and laid a solid foundation for the contemplated issuance.

Considering the recent volatile fluctuation of U.S. Treasury Rate and the mass oversupply in the Asia primary bond market, both have led the investors to become overly cautious and prudent on their investment policies. CICC has successfully assisted the Issuer efficiently completed the related due diligence and documentation preparation prior to the Issuance, and organized roadshow to Hong Kong and Singapore. The Issuer has met over 45 investors during the roadshow and nearly 40 investors through the HK investor luncheon. The roadshow has ensured efficient communication with targeted investors and achieved significant marketing propaganda effects.

The book opened in Asia on Dec 6th morning with an initial price guidance of T10+275 bps.  The book built up rapidly reaching over USD 600 million within one hour of book opening. By the time of 2pm in the afternoon, the book has reached over USD 1.2 billion and amounted over USD 1.7 billion at its peak before final price guidance. On the back of strong investor demand, syndicate has decided to set the final price guidance with 30 bps tightened from the initial price guidance. The final order book received orders from 75 accounts across fund managers, corporates, banks and private banks. The Issuance has met the client’s expectation in terms of both size and pricing. The credit highlights of the Issuer and Chengdu have also been well publicized in the international capital markets.

CICC, acted as the Sole Global Coordinator, Sole Bookrunner, Sole Lead Manager and Sole Rating Advisor of the Issuance, took over the whole execution process including international rating advisory, obtaining regulatory approval, due diligence, documentation, marketing, distribution, settlement, etc., The Issuance further solidified the leading position of CICC in the international capital markets.