Tuesday, March 20,
2018 08.44AM / ChinaEquity Group
Recently, Shenzhen Capital Group Co.,
Ltd ("SCGC") issued the second tranche of Innovation and
Entrepreneurship Corporate Bonds via Shenzhen Stock Exchange (“SZSE”), which
also issued a Letter of No Objection as regards the 680 million yuan private
placement of Innovation and Entrepreneurship Bonds by Shenzhen Co-Stone Asset
Management Co., Ltd. ("Co-Stone Asset") and 800 million yuan private
placement of corporate bonds of the same nature by ChinaEquity Group
("CEG" for short).
Since the release of the Guidance of China Securities Regulatory
Commission on Lauching the Pilot Program of Innovation and Entrepreneurship
Bonds, the Innovation and Entrepreneurship Bond pilot programs
for venture capital firms have been ever expanding.
With venture capital firms as the
issuer, corporate bonds of innovation and entrepreneurship nature are mainly
used to raise capital to invest in the equity products of innovative companies
and start-ups in their seed, start-up and growth stages. For venture capital
firms, the bonds would not only broaden financing channels and optimize the
debt structure, but would also bring funds at their disposal to launch
investment products, and boost the confidence of limited partners.
The firms could also expand the scale
of innovation and entrepreneurship related equity investment with more
long-term and lower-cost fund. The large-scale Chinese investment group SCGC
has issued the first tranche of "17 Venture S1", a corporate bond of
innovation and entrepreneurship nature, in the amount of 500 million yuan, with
a maturity period of 5 years and an interest rate of 5.20% which is much lower
than the average interest rate in the bond market in the same period.
The pilot projects for Innovation and
Entrepreneurship Bonds for high-quality venture capital firms will better
support the development of these firms and facilitate the implementation of
innovation-driven development strategies. The debt rating for the Innovation
and Entrepreneurship Corporate Bonds issued by SCGC, Co-Stone Asset and CEG are
AAA. SCGC will primarily use the raised capital to set up a venture capital
fund, investing in technologies of independent-innovation and emerging
industries supported by the state. Co-Stone Asset will mainly invest the
"Industry 4.0" sectors represented by robotics, intelligent
manufacturing, intelligent production, and intelligent plants.
CEG will focus on providing capital
services to companies of new technologies, new models or new products through
the entire industry chain. Used effectively, the raised funds shall benefit
more innovative company and start-ups.
After years of development, servicing
and supporting innovation and entrepreneurship has become a distinctive brand
feature of SZSE. By now, SZSE has handled Innovation and Entrepreneurship
Corporate Bond and Innovation and Entrepreneurship Convertible Bond issuance
for 29 companies, with over 2 billion yuan of funds raised via these projects.
Guided by China Securities Regulatory
Commission, SZSE will relentlessly push forward the sound development of
corporate bonds of innovation and entrepreneurship nature, continue to provide
services and support to promote innovation and entrepreneurship in Shenzhen
market, build a world-leading innovation capital formation center at full
strength, and proactively improve its capabilities in serving the quality
development of the real economy.