On November 10, the third 10 billion yuan of corporate bonds in 2015 issued successfully in the inter-bank market, and on next day, the money was fully funded. These bonds were in bookkeeping way and unsecured with fixed-rate, including 8 billion 3-year bonds with the interest rate of 3.58% and 2 billion 5-year bonds with the interest rate of 3.75%, which were 1.17 and 1 percentage points lower than the current benchmark bank loan interest rate separately. Thus 380 million yuan interest could be saved.
Recently, the Central Bank's constant reduction of the RRR and interest rate made it a better time to issue bonds because of the low bond market yield. In the fourth quarter, SGCC's capital demand was high as of lots of payment. It fastened the pace and immediately issued this time after the 10-billion corporate bonds on October 20. During the issuance process, Department of Finance & Asset actively responded to the changes in the capital market, increased sales promotion, actively communicated with the main partner banks and maximized the new investment potential. It overcame the diversion of funds caused by the restart of IPO and made the subscription ratio 2.9 times, which was a new high this year.
So far, the company has successfully issued 70 billion yuan of bonds this year. Department of Finance & Asset would continue to strengthen the follow-up analysis of the bond market and earnestly finish the sequel work to guarantee the cash flow in next period of time.