China Industrial Bank (CIB) recently achieved a milestone by successfully underwriting the Sustainable Development Yulan Bond issued by Wuxi Construction and Development Investment Co., Ltd. The issuance, valued at RMB 2.142 billion with a 3-year tenor and a coupon rate of 2.68%, marks the first foray by a non-financial company into the Yulan Bond market since the product's launch by Shanghai Clearing House and Euroclear Bank in December 2020.
Named after Yulan Magnolia, Shanghai's city flower, the Yulan Bond is an innovative financial product designed to help Chinese issuers access international capital markets through the cross-border connectivity of financial infrastructures. This joint initiative between Shanghai Clearing House and Euroclear Bank provides streamlined registration, custody and settlement services for both Chinese issuers and global investors across interconnected financial infrastructures.
"The successful issuance of this Yulan bond is another testament to CIB's investment banking capabilities and our role in helping issuers tap international markets," said the Head of CIB's Investment Banking Department. "This achievement not only serves the real economy, but also underscores our commitment to the further opening up of China's bond market."
In recent years, CIB has been at the forefront of capital market innovation, actively exploring new frontiers in investment banking and providing holistic solutions to both domestic and international issuers as part of its efforts to consolidate its investment banking pillar. Over the past three years, CIB has consistently ranked among the top Chinese joint-stock commercial banks in terms of overseas bond underwriting volume.