Flexibly Adjusting the Issue Strategy, Optimizing the Liability Duration Structure: SSAM Issues First-tranche MTNs in 2020
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Seizing Opportunity, Recording Lowest Coupon Rate, Enhancing Market Visibility: SSAM Successfully Issues First-Tranche MTNs in 2023
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On June 16, Shanghai State-Owned Assets Management Co., Ltd. (SSAM) issued its first-tranche medium-term notes (MTNs) in 2020, with a scale of 1 billion yuan, a term of 3+2 years, a coupon rate of 3.09 percent and the lowest price among MTNs issued with the same term in June.
The issue came amid complex external environment. Due to the orderly recovery of the domestic economy, the normalization of monetary policies, fund re-pricing by the Central Bank, the regulator's crackdown on fund idling and other factors, bond market interest rates have recently risen significantly. After giving overall consideration to market changes and its liability structure, SSAM adjusted the issue term from 5 years to 3+2 years. As the first attempt to issue MTNs with a special term, it evaded the risk of concentrated bond maturity three years later at a lower financing cost.
Through early frequent communication, the coordination between Beijing and Shanghai on the day of bookkeeping and the advantage complementation between banks and securities brokers, the issue raised a sum of over 2.4 billion yuan from banks, fund companies, insurance companies, securities brokers and assets management companies, showing SSAM's favorable image and influence in the capital market. The raised fund will further serve the overall strategies of SIG and SSAM, support their primary business and effectively promote financing-investment interaction.
