OREANDA-NEWS. December 15, 2014. 2014 Phase II medium-term note of China Merchants Group was issued in the inter-bank bond market, where ICBC acted as the exclusive leading underwriter. The medium-term note was issued in a public offering manner.

The issuing amount was RMB 3.96 billion with a tenor of five years. The funds raised will be used to replace M&A loans. This was the first M&A bond publicly offered in China and the funding volume hit a record high since M&A bond came to birth in China’s inter-bank bond market.

As is learned, in the context of China’s economic structural adjustment and the acceleration of Chinese enterprises going global, significant financial demand has arisen from corporate M&A, restructuring and industrial upgrading. As M&A bond could bring about more enterprise issuers and expand M&A and financing channels for enterprises in the inter-bank bond market, the National Association of Financial Market Institutional Investors has rolled out M&A bonds for M&A based on the existing debt financing instruments. Previously, ICBC has successfully underwritten private placement M&A bonds of RMB 890 million for Legend Holdings.

The issuance of public offering M&A bonds underwritten by ICBC expanded financing channels of China Merchants Group and reduced financing cost. In addition, thanks to the broad issuing coverage, strong circulation and high information transparency from public offering, the profile and reputation of China Merchants Group has been raised. Moreover, ICBC has consolidated its edge as a leading underwriter in inter-bank bond market and contributed to the sound development of capital market.