A state-owned real estate developer in the city of Chengdu has listed €500 million ($622 million) of Eurobonds on the China Europe International Exchange (CEINEX) in Frankfurt.
The issuance from Chengdu Xingcheng Investment Group is the first Eurobond from Southwest China, according to a statement from CEINEX, and also the first Eurobond on CEINEX from a non-financial enterprise.
“This Eurobond is the largest direct financing of Chengdu Xincheng Investment Group, and sets the record for lowest financing costs in the open market for the group,” said Ren Zhineng, chairman of Chengdu Xingcheng Investment Group. “It not only reduces the cost of capital, but also is a signal to attract global capital for the further development of Chengdu.”
CEINEX is a marketplace for offshore renminbi and China-focused investment instruments. It uses the Deutsche Börse infrastructure.
Chengdu Xincheng Investment Group plans to use the proceeds of its bonds on an urban ecological project to turn Chengdu into “a beautiful and liveable park-like habitat for its citizens and visitors”, according to the CEINEX statement.
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