CAG's Medium-term Notes were Successfully Issued with Coupon Rate only 3.8%

发布时间:2019-04-03 14:14:21    点击:

Beijing, 14 March 2019 –Beijing Capital Agribusiness Group Co., Ltd. (hereinafter referred to as “CAG”), rated by Dagong Global Credit Rating Co., Ltd. (hereinafter referred to as “Dagong”), successfully issued 1.1 billion yuan medium-term notes (MTNs). Dagong assigned MTN credit rating of CAG at AAA, the bond is referred to as “19 CAG MTN001” with bond code “101900325”. The issuance scale is 1.1 billion yuan with maturity of 3 years and coupon rate 3.8%. The proceeds from the issuance of medium-term notes will be used to repay bank loans of CAG.

According to the pricing and valuation curve system of the National Association of Financial Market Institutional Investors: since 2019, the coupon rate of 3-year debt financing instruments by AAA non-financial enterprises has remained above 4.27%, and that of 1-year has remained above 3.83%. The coupon rate of MTN issued by CAG is only 3.8%, which is not only lower than the coupon rate of 3-year debt financing instruments by AAA non-financial enterprises, but also lower than the 1-year ones. Therefore, the successful issuance of MTN will further improve the financing term structure of CAG.

Dagong believes that CAG has strong market competitiveness and wealth creation ability. Thanks to its diversified business layout, high level of scientific research and technology, and well-known brands, CAG could rely on the enterprises within the group to cover the whole industry chain from procurement, processing to sales. In addition, it has played an active role in the integration of Beijing-Tianjin-Hebei regional agricultural product supply networks and the construction of bases providing vegetables, grains, dairy products and meat. After the merger and restructuring with Beijing Grain Group Co., Ltd. and Beijing Er Shang Group Co., Ltd., the industrial chain, synergies of various industries and the profitability have been further improved.
Edited by: Zhang Yue, Industry and Commerce Department