Dentons contributing to Guangzhou Fund’s successful issuance of US dollar bonds

With Guangzhou Industry Investment Fund Management Co., Ltd. (“Guangzhou Fund”) as the guarantor and its wholly-owned subsidiary Vertex Capital Investment Limited as the issuer, a 5-year bond of US$300 million was successfully issued on July 22, 2021 at the interest rate of 2.85%.

 

On the day of pricing, after the initial price was announced, the orders rose rapidly with the peak exceeding USD3.6 billion and the over-raise subscription higher than 1200%. Based on strong transactions, the final price was 50 basis points lower than the initial price index. The issuance successfully attracted attention from domestic and foreign investment institutions and subscription by more than 100 premium investors, including BlackRock, ValuePartner, Fidelity, China Life, E Fund, China Asset Management, Fullgoal Fund, etc.
 

 

Guangzhou Fund is an industry investment and financing platform specially established by the Guangzhou Municipal Party Committee and Municipal Government to promote the industrial transformation and upgrading, amplify the guiding effect of financial funds, incentivise social investment, and strengthen the status of Guangzhou city as the regional financial center. After the official release of the Guangdong-Hong Kong-Macao Greater Bay Area plan, Guangzhou Fund, oriented by its status and mission, gave full play to its guiding role of financial funds and leading role of SOE, and actively expanded its business in the Greater Bay Area. The successful issuance of the US dollar bond is precisely a great move to promote regional financial development by leveraging the development momentum of the Bay Area, fully reflecting the capital markets’ recognition of the platform functions of the Guangzhou Fund and the promising development of the Greater Bay Area.