Haitong Securities successfully created the first credit protection voucher for the business of ' newly issued credit protected pledge-style repo'

publication time:2021-07-26 from:海通证券

On July 26, 2021, Jinan Financial Holding Group Co, Ltd., whose lead underwriter is Haitong Securities, successfully issued corporate bonds. At the same time, Haitong successfully set up the credit protection certificates, which has been the first newly issued bonds and credit protection certificates that can be included in China settlement pledge library and carry out pledge repo business since the issuance of the《Interim Measures for the administration of credit protected pledge-style repo》on April 2, 2021.

The underlying bond 21 Jijin 03 has an maturity of 3 years and a coupon rate of 3.95%. The credit protection certificate 21 Haitong W1 created simultaneously by Haitong Securities has a nominal principal of 50 million yuan and a subscription multiple of 1.8 times, which has been actively subscribed by market institutional investors such as WanJia Asset Management , Guosen Securities, Orient fund management and Guotai Junan Securities.

Jinan Financial Holding Group Co., Ltd., the issuer, is a wholly state-owned company approved by the Jinan municipal Party committee and the municipal government. It is mainly responsible for integrating all kinds of financial resources in Jinan and providing support and guarantee for building a regional financial center.

The synchronous issuance scheme of 'main rated AA + corporate bonds and credit protection certificates' launched this time, for the issuer, through the synchronous issuance of underling bonds and credit protection certificates in the primary market, effectively improved the enthusiasm of investors to subscribe, further broke the regional restrictions of investors, and boosted the recognition of enterprises in the whole market.

For investors, the credit protected pledge-style repo business provides a new choice for its flexible allocation between credit sinking and leverage income, which helps to improve the overall return on investment. At the same time, the launch of credit protected pledge-style repo business helps promote the perfection of credit derivatives market and also improves the overall liquidity of bond market, thus attract more investors to participate in the investment of AA + public corporate bonds of the exchange.

Haitong Securities actively planned for this creation, and rapidly promoted and implemented it under the guidance of Shanghai Stock Exchange and China Clearing, so as to take a key step for market innovation. In the first half of 2021, the scale of Haitong's creation of credit protection tools ranked second in the market; Up to now, Haitong Securities still has more than ten credit protection voucher projects in orderly progress.

Next, under the guidance of CSRC, exchange and China settlement, as the first qualified creation institution of credit protected pledge-style repo, Haitong Securities will continue to strengthen capital intermediary business, bridge capital market, adhere to serving national strategy with innovation, keep pace with time, keep innovation and build benchmark investment bank.

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HAITONG Securities Company Limited published this content on 26 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 August 2021 00:53:02 UTC.