Recently, the National Development and Reform Commission issued a document allowing Changde Dingcheng Jiangnan Xincheng Construction Investment Development, or Jiang Nan Cheng Tou, to issue green bonds of no more than 1.3 billion yuan.
This is the second corporate bond approved by the city this year.
The term of this bond is 7 years. It takes the form of a fixed interest rate, and simple interest is calculated annually.
The raised funds are mainly used for the construction of the sponge city in the west district of Dingcheng New City.
All bonds in this period are subject to prepayment terms, that is, from the third year of the bond's duration, the principal of the bond will be repaid at a rate of 20% of the principal value per hundred yuan.
The bond also includes the issuer's option to adjust the coupon rate and the investor's option to resell. That is, at the end of the fifth interest-bearing year of the current bond period, the issuer can choose to increase or decrease the original bond coupon rate by 0 to 300 basis points.
Investors have the right to sell back part or all of the bonds held to the issuer.
After the outbreak of the New Coronary Pneumonia, the state supports the issuance of bond financing by the outbreak areas and the outbreak prevention and control enterprises. Since this year, Changde City has applied for three epidemic debts for roll-overs, with a total scale of 3.69 billion yuan.
A total of 2 corporate bonds were approved by the National Development and Reform Commission, with a total size of 2.5 billion yuan; one corporate bond was issued 1.5 billion yuan.
Up to now, Changde City's corporate bonds have issued a total of 22.73 billion yuan, including 9.3 billion yuan at the city level and 13.43 billion yuan in districts and counties (cities), providing an important financial guarantee for the city's economic and social development.