Liaoning Energy Industry Co., Ltd. has successfully issued its first corporate bonds worth 1 billion yuan with a 3+2-year term and an annual coupon rate of 2.4%. This marks the first corporate bond issuance by a provincial state-owned enterprise in the region since 2021 and represents a breakthrough for Liaoning Energy in direct financing.
Corporate bonds are securities issued under legal procedures, with fixed repayment terms and interest rates, regulated by the China Securities Regulatory Commission (CSRC) as a direct financing instrument. Bondholders act as creditors and do not participate in corporate decision-making. The successful issuance reflects the company’s deepening reforms and strategic push toward clean energy, injecting vitality into sustainable high-quality development.
In compliance with regulatory requirements, the bonds secured an AAA credit rating from domestic authorities before issuance. The first tranche’s size, maturity, and timing were carefully determined, attracting 16 institutional investors, including banks, wealth management firms, insurers, and mutual funds. Subscription demand reached 1.72 billion yuan, 1.72 times the issuance size, demonstrating strong market confidence.
After multiple pricing rounds, the coupon rate was set at 2.4%, the lowest in three years for similarly rated state-owned enterprises in Northeast China. This rate is 88 basis points below the group’s average financing cost, saving over 26 million yuan in interest expenses over three years.
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