Lates News

The China Interbank Market Dealers Association recently disclosed that the first batch of projects supported by innovative technology bonds risk sharing tools have successfully landed. Five private equity investment institutions have obtained risk sharing tools credit enhancement and investment support, and have completed a total issuance scale of 1.35 billion yuan. The private equity venture capital institutions issued in this round of financing have two major characteristics: firstly, the bond maturity has been significantly extended, with the longest period reaching 10 years, far exceeding the typical 3 to 5 year medium-term notes; secondly, the issuance interest rates have been significantly reduced, lower than the face value interest rates of similar types of bonds issued by state-owned enterprises. It is worth noting that this is the first batch of entities to obtain financing through the risk sharing tools set up by the central bank after the establishment of the "technology board" in the bond market. Industry insiders analyze that the bond market "technology board" has initially achieved "stock-bond-loan" linkage by introducing a risk sharing mechanism and optimizing the fund transmission chain. With the further expansion of the issuing entities, it is expected to attract more participants to the bond market "technology board" and further enrich the market ecosystem. (NBD)