China Railway Construction Corporation (01186) announced that, with the registration effective of "CSRC Approval [2023] No. 2598", it has been approved to publicly issue bonds with a total face value not exceeding 30 billion yuan (including 30 billion yuan) to professional investors, which can be issued in installments within the registration validity period.
In 2024, the company publicly issued the fourth phase of technology innovation renewable corporate bonds to professional investors (referred to as "this bond"), with an issuance size not exceeding 3 billion yuan (including 3 billion yuan). This bond is divided into three categories. Category one has an interest period of 3 years each cycle. At the end of each cycle, the issuer has the right to choose to extend the term of category one by 1 cycle (i.e., 3 years), or choose to fully redeem the bond at the end of that cycle. Category two has an interest period of 5 years each cycle. At the end of each cycle, the issuer has the right to choose to extend the term of category two by 1 cycle (i.e., 5 years), or choose to fully redeem the bond at the end of that cycle. Category three has an interest period of 10 years each cycle. At the end of each cycle, the issuer has the right to choose to extend the term of category three by 1 cycle (i.e., 10 years), or choose to fully redeem the bond at the end of that cycle. This bond introduces an inter-category call option, with no restrictions on the call ratio. The issuer and lead underwriter will decide whether to exercise the inter-category call option based on the subscription status within the total issuance size.
The issuance of this bond was completed on October 28, 2024. Only categories one and two were issued in the end. The final actual issuance size of category one was 1.5 billion yuan, with a nominal interest rate of 2.35% for the first cycle, and a subscription multiple of 2.20 times; the final actual issuance size of category two was 1.5 billion yuan, with a nominal interest rate of 2.50% for the first cycle, and a subscription multiple of 2.00 times.
