Seizing Opportunity, Recording Lowest Coupon Rate, Enhancing Market Visibility: SSAM Successfully Issues First-Tranche MTNs in 2023

    On April 17, Shanghai State-Owned Assets Management Co., Ltd. (SSAM) successfully issued its first-tranche MTNs in 2023, with a term of 3 years, a scale of 1 billion yuan and a coupon rate of 2.90%, registering the lowest interest rate among corporate bonds issued with the same term by local state-owned enterprises in China and by all enterprises in Shanghai this year.

    Since March, the cut to the reserve requirement ratio by the People's Bank of China has led to abundant liquidity, funding has been stable, fluctuations have increased on the pileup of overseas risks, and multiple factors have further driven down interest rates. SSAM has seized the opportunity of the ratio cut to issue MTNs again two years later with the approval of the National Association of Financial Market Institutional Investors. The company was highly recognized by the market during the bookkeeping period, and eventually completed the issuance with 3 times of subscription. So far this year, the company has successfully issued bonds at low costs on both the inter-bank market and the stock exchange.

    The successful issuance shows the market's high recognition of SSAM's role as a quality market entity. The company will conduct rational planning based on its business needs, further improve its capability of active liability management, and provide quality and efficient funding for its business development. In the future, the company will build on the sound momentum, forge ahead with enterprise and fortitude, and make new contributions to enhancing SIG's strategic visibility and opening up a new prospect for high-quality development of the state-owned enterprise.