The first “mass entrepreneurship and innovation” debt financing instruments successfully issued in the interbank market.

On April 25, the first “mass entrepreneurship and innovation” debt financing instruments were registered; on May 8, CDHT Investment's first-phase “mass entrepreneurship and innovation” debt financing instrument in 2017, the first “mass entrepreneurship and innovation” debt financing instrument, was successfully issued through book building.

With a registered amount of RMB 1 billion for CDHT Investment's “mass entrepreneurship and innovation” debt financing instrument, the first issue values RMB 0.5 billion, with a term of 5 years and an issuing rate of 5.6%, involving a total of 7 investors for private placement, which was widely accepted by the investors in the interbank bond market. Of the fund raised, RMB 900million is used for the repayment of bank loans and the construction of incubator projects, and RMB 100million used for investment in the equity of 11 innovative enterprises, covering biological medicine, high-end equipment manufacturing, internet software development, energy conservation and environment protection, and other national strategic emerging industries, directly supporting the technical innovation, construction and development of the pioneering and innovative enterprises in Chengdu Hi-tech Development Zone.

As the first “mass entrepreneurship and innovation” debt financing instrument issued in the interbank market, the first-phase debt financing instrument indicates an innovation in the mode of financial service to entrepreneurial and innovative enterprises, and is significant for guiding the allocation of financial resources in the technology sector and for giving full play to the role of the interbank market in supporting the development of the entrepreneurial and innovative enterprises.

Recently, the Agricultural Bank of China and the China Bond Insurance respectively created a credit-linked note product, indicating the official entry of the credit-linked note into the interbank market. The first two credit-linked note products were issued as private placement. The product information was disclosed on NAFMII's integrated business and information service platform on April 27. After right verification registration with Shanghai Clearing House on May 3 and 4, the products were put in the National Interbank Funding Center for trading and circulation the next day. The notional principal of the first credit-linked notes totaled RMB 50 million with a term of no more than 1 year. The reference entities cover the energy and urban construction industries and the subscribed investors include China Bond Insurance, China Minsheng Bank, Bank of Shanghai, etc.

Credit-linked notes are a credential credit risk mitigation instrument. The investors subscribing the credit-linked notes can obtain the double benefit of principal interest and credit risk protection cost when the reference entities have no credit events and should compensate the issuing (creation) organizations based on their subscription principal.