The Dream Factory of China

A bond that aims to help enterprises reduce the financial risk during the COVID-19 outbreak was issued by China Nanshan Development (Group) Inc. on Feb. 6 in response to the People s Bank of China and China Securities Regulatory Commission s call for strengthening financial support of the epidemic fight.

The “20 Nanshan Development SCP001” is a 270-day ultra-short-term bond issued for the interbank market, with a scale of 300 million yuan (US$42.78 million) and an interest rate of 2.5 percent. China Merchants Bank Shenzhen Branch is the lead underwriter of the bond.

The interest rate of the bond is 70 basis points lower than the average price of all the ultra-short-term financing bonds of the same rating that issued in the same period for the interbank market since 2019. Two-hundred million yuan of the raised funds will be used to supplement the company s subsidiaries liquidity for virus prevention and control.

As one of the beneficiaries of the bond, China Nanshan Development (Group) Inc. has raised money to help its subsidiary companies to overcome financial difficulties.

Its subsidiary companies have undertaken a large number of anti-epidemic work, including the construction of rooms at Huoshenshan Hospital and Leishenshan Hospital in Wuhan, the hardest-hit city by the virus, and the transportation of emergency supplies to Hubei Province.

China Nanshan Development (Group) Inc., founded in 1982，is registered in the Qianhai & Shekou Free Trade Area with a registered capital of 900 million yuan.

According to the Qianhai Cooperation Zone Authority, the issuance of the first anti-virus bond has provided financial guarantee for enterprises to fight the epidemic and overcome their difficulties.

Qianhai Cooperation Zone Authority is also planning to handle applications submitted by financial institutions that provide services to anti-epidemic units and enterprises. The financial institutions are encouraged to innovate related financial products and services and participate in the epidemic fight with financial instruments such as bonds and fundraising.