CICC, acting as Sole Rating Advisor and Joint Global Coordinator, successfully assisted Nanjing Yangzi State-owned Assets Investment Group Co., Ltd. (“Yangzi Investment” or the “issuer”) in completing its debut bond issuance of USD 500 million on November 24th, 2017 (the “issuance”). CICC has previously completed the first investment grade USD bond issued by local SOEs’ of Chongqing and Chengdu city; CICC, once again, completed the first investment grade USD bond issued by local SOE of Nanjing city. This transaction is not only a landmark achievement in the offshore capital market for Yangzi Investment, but also allow the issuer to realized low funding cost and significant market influence.

Yangzi Investment was established in April 2014, with registered capital fully paid by Nanjing SASAC as state-owned sole proprietorship. Nanjing Jiangbei New District Management Committee was authorized to fulfill management duties and responsibilities on behalf of the Nanjing City Government. The issuer is the sole investment and financing platform of the Nanjing City Government that focuses on infrastructure development and provision of public utility services in the Nanjing Jiangbei New District, and the issuer has been commissioned by the Nanjing City Government to manage a unified financing platform to provide funding to support all the development of social housing projects in Nanjing. The issuer is also one of the largest local government-owned companies of Nanjing by total assets, with large project investment, industry transformation, and advance city construction responsibilities for Jiangbei New District.

CICC, acting as Sole Rating Advisor, successfully assisted Yangzi Investment in achieving outstanding rating results from three international rating agencies, Baa1 from Moody’s, BBB+ from S&P and A- from Fitch, all with stable outlook. A- is the highest international rating achieved among all the rated companies within Jiangsu Province. The impressive rating results fully illustrate Yangzi Investment’s outstanding credit highlights to international investors, which laid a solid foundation for the success of the following bond issuance.

Considering the recent volatile fluctuation of U.S. Treasury Rate and the mass oversupply in the Asia primary bond market, have both led the investors to become overly cautious and prudent on their investment policy. Nevertheless, this transaction has stood out among the others by achieving excellent execution and marketing propaganda effects. Therefore this debut bond has received significant orders from investors. Within the first hour after the book open, the transaction received overwhelming demand with orders exceeding USD 1.0 Billion, representing 2x coverage over the issuance size. The order book momentum continuously grew throughout the day, and at maximum, the total order book exceeded USD 5.0 Billion, with one of the highest coverage ratios among all the USD bonds issued by Chinese local SOEs. In addition, the initial price guidance of 5-year tranche and 10-year tranche were T5+215bps and T10+265bps respectively. Both tranches, in the end, were priced 30bps lower than the initial price guidance, representing one of the largest narrow-down levels among all the USD bonds issued by Chinese local SOEs.

CICC, acting as the Left-lead Joint Global Coordinator in the transaction, is responsible for leading all the execution work including international rating, due diligence, transaction documents, marketing strategies and project coordination. The excellent execution ability made significant contribution to the success of grasping the optimal issue window. Not only was this result greatly praised and recognized by the issuer, but also CICC, once again, prove leading status as the top all-around investment bank in the international fixed-income capital market.