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Yuexiu Transport Successfully Issues RMB 1 Billion Panda Bonds

Date: 2016-03-24
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Yuexiu Transport successfully issued RMB 1 billion Panda Bonds on 23 March 2016, becoming the first public offering on the stock exchange to issue them and representing a major breakthrough in diversifying financial channels.


Yuexiu Transport issued Panda Bonds amounting to RMB 1 billion, some of which are of the “3+2” term bonds of RMB 3 billion with a coupon rate of 2.85%  that represented a historic new low. “5+2” term bonds of RMB 7 billion with a coupon rate of 3.38%. This time, the Panda Bond received a “CITIC” granted credit rating and a bond rating of AAA. After issuance, the bond will trade on the Shanghai Stock Exchange. Guangzhou Securities Limited is a key distributor.


Also, Yuexiu Transport took advantage of China’s policy to push and liberalize Panda Bonds as a test point, successfully “stealing the beach and becoming the “pioneer” in publicly issuing Panda Bonds in overseas non-financial corporations. Through Panda Bonds, the Group managed to establish new bench marks in the high-speed industry of bond financing, greatly increased company’s image in capital markets and to lay deeper foundations for progress in capital operations.


This time, Panda Bond’s successful issuance not only helps Yuexiu receive low cost capital, improve its debt liability structure, expand its capital raising avenues, but also improves its corporate image and thus successfully aid in the company’s future development.


This marks the completed “pioneering” of Panda Bond public issuance, which will continue with the low interest rate of 2015 (fixed coupon rate at 1.625%) issued with a 3 years term of 2 billion Euro midterm notes and further broaden the financing. The lower interest rates will help companies reduce financial costs and improve overall profitability. On the other hand the Company will actively respond to changes in the macroeconomic environment, capitalize on favorable domestic financing environments, and increase RMB financing efforts. The Group is also committed to enhancing the efficient use of funds to create better returns for shareholders.

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