CICC Assists Chengdu Tianfu New Area Investment Group Debut 5-year USD300 million Senior Bond Issuance

CICC, acting as lead Global Coordinator, Bookrunner and Rating Advisor, successfully assisted Chengdu Tianfu New Area Investment Group Co., Ltd (“CDTF” or the “Company”) to complete its debut offshore bond issuance of 5-year 4.650% coupon USD300 million Senior Fixed-rate Notes on 25 April, 2019 (the “Issuance”). The Company is the first state-owned enterprise in Sichuan province obtaining investment grade ratings from two international rating agencies concurrently. The Issuance has achieved breakthroughs in both tenor and cost perspective as the first 5-year USD bond and lowest yield in Sichuan Province since 2017. The Issuance, as a milestone of CDTF, allows the Company to develop a new financing channel in international capital markets and enjoy favorable funding cost, fully displaying credit highlights of Chengdu Municipality, Tianfu New Area and the Company to international market.

Established in August 2013, the Company is wholly owned by Treasury and Finance Bureau of Sichuan Tianfu New Area (Chengdu) Management Committee. By the end of 2018, the Company has owned total assets 102.85 billion yuan, net assets 34.88 billion yuan, operating income 2.36 billion yuan and net income 0.69 billion yuan. The Company is the only state-owned enterprise in the Tianfu New Area Chengdu Region, being the investment entity for regional development, the management and operating entity for state-owned assets. CDTF undertakes 33 major infrastructure projects and has projects under construction amounting to 110 billion yuan in 2018, covering infrastructure construction, industrial park operation, urban operation, housing and education.

The Company achieved favorable funding cost with a relatively long tenor through effective marketing and optimal issuance strategy. The Company had in-depth communications with over 100 global institutional investors during one-week global roadshow, and locked high-quality anchor orders before book opening. Post roadshows, CICC maintained close communication with investors and monitored market conditions, and seized a favorable issuance window by capturing the downward US treasury movement and locked a relatively flatting yield curve, resulting a warm market response to the five-year notes. The order book recorded USD1.2 billion within 1.5 hours after opening, and finally amounted over USD1.8 billion with orders from 68 investors, which represents 6.0x over-subscription under initial price guidance. On the back of strong order book, the final pricing was revised down to 4.65%, tightening 35 bps from the initial price guidance of 5% area.

As lead Global Coordinator and Rating Advisor, CICC successfully assisted CDTF to achieve an issuer rating of BBB from Fitch by deeply exploring credit highlights, and efficiently completed execution process including regulatory approval, due diligence, documentation, roadshow logistics, marketing and distribution, settlement and ect.. The issuance is another offshore bond issued by large state-owned enterprises of Sichuan led by CICC following Chengdu Xingcheng, Chengdu Communications, Sichuan Transportation, Chengdu High-tech, which further served Sichuan’s international strategy and solidified the leading position of CICC in the international debt capital markets.