The National Development and Reform Commission approved the request of Lanzhou Rail Transit Co., Ltd. to issue green renewable corporate bonds in 2019, allowing the company to issue green renewable bonds of 1 billion yuan.
Of this amount, 650 million yuan will be used for the construction of the first phase of Lanzhou Urban Rail Transit Line 2, and 350 million yuan will be used to supplement working capital.
The interest rate reset period is three interest-bearing years, with renewable option. It takes the form of floating interest rate, and will bear interest at a fixed rate per annum on a simple interest basis. Its coupon rate is determined by the benchmark rate plus the base spread.
The benchmark interest rate is determined once in each reset period.
The coupon rate and the base spread of the initial issuance shall be determined by the issuer and the lead underwriter on the basis of the results of bookkeeping and filing at the time of the issuance, and the base spread shall remain unchanged within its duration.
At the same time, the issuer shall have the right to postpone the payment of interest.
The current issue is in the form of book-entry enterprise bonds registered in real name, and shall be conducted in the principle of centralized allocation based on the results of bookbuilding. It will be publicly issued by the underwriters to institutional investors in the interbank market, and registered with the China Central Depository & Clearing Co., Ltd.
After the listing of the current issue of bonds, only institutional investors shall participate in the transaction, and the relevant trading venues shall establish an isolation system to prohibit individual investors from participating in the transaction.
The bonds of the current issue are guaranteed by Gansu Financial Holding Guarantee Group with irrevocable and unconditional joint and several liability for guarantee responsibility in full amount. The lead underwriter Haitong Securities Co., Ltd. sets up an underwriting syndicate with standby underwriting commitments.
This is the second bond issued by Lanzhou Rail Transit Company this year.