State-owned firm issues $500 million bonds overseas

Xiangyu Group, a wholly state-owned enterprise in Xiamen, has issued 5-year bonds worth $500 million at a coupon rate of 4.5 percent outside China. [Photo provided to chinadaily.com.cn]

Xiangyu Group, a wholly state-owned enterprise with its headquarters in Xiamen, has recently issued 5-year bonds worth $500 million at a coupon rate of 4.5 percent outside China.

Such a coupon rate is much lower than those of comparable Chinese enterprises.

Fitch Ratings has assigned final "BBB" ratings to Xiangyu Group, which lays a solid foundation for the company's success.

It's the first investment-grade rating that a Xiamen enterprise has been assigned by one of the three major international rating agencies and also the highest rating obtained by any Fujian-based enterprise.

From Jan 17 to 20 this year the group organized three roadshows in Hong Kong, Singapore and London.

More than 150 renowned international investment institutions around the world, especially in Europe and the United States, such as JP Morgan, Swiss Bank Corporation, Citibank, and Schroders Group, kept a watchful eye on the group after it released its debt issuance program.