On May 20th, 2022, the State Development and Investment (Group) Corporation Ltd, successfully issued its corporate bonds for technology innovation (first batch) at the Shanghai Stock Exchange. It was the first issuance of such technology innovation corporate bond after the promulgation of The Guideline No. 4 of the Appraisal Rules of the Shanghai Stock Exchange Corporate Bond Issuance -- Technology Innovation Corporate Bond. Essence Securities was the lead underwriter while China Development Bank Securities and China Securities were the co-principal underwriters.

The technology innovation bond is a new kind of corporate bond launched by stock exchanges under the guidance of the China Securities Regulatory Commission, aims to provide targeted financial support to technology innovations and mainly serves four categories of issuers: technology innovation enterprises, technology innovation upgrading and transformation, technology innovation investment and technology innovation incubation. Funds raised from the technology corporate bond will mainly be used to meet the needs of new- and high-tech industries, emerging industries with strategic importance and upgrading and transformation of traditional industries. Stock exchanges provide auxiliary support in appraisal procedures and fund usage. The successful issuance of SDIC's technology innovation corporate bonds, with the guidance of the Shanghai Stock Exchange, set a good example and gained popularity in the market. The bond proceeds are mainly used for substituting the capital invested by funds in technology innovation enterprises within one year. It is an important demonstration of SDIC in serving the national strategy and playing a leading and guiding role of State-owned capital in key industries and sectors. It is of great importance in broadening fund-raising channels and guiding the upgrading and transformation of traditional industries.

Since the beginning of this year, domestic and international bond markets encountered severe fluctuations due to the impact of the COVID-19 pandemic. By taking the favorable opportunity of the Central Bank's move of lowering the long-term LPR, SDIC had conducted thorough communication with underwriters and investors on market development trend and investors' enthusiasm and won active subscriptions from a large group of renowned investment institutions. The technology innovation corporate bonds issued by SDIC are in two categories: three-year term and 10-year term. The 500 million yuan three-year term bond carries a coupon rate of 2.75%, with its over subscription rate hitting 5.51 times; and the 2.5 billion yuan 10-year term bond has a coupon rate of 3.62%, with its over subscription rate reaching 2.53 times. The coupon rates are historically the lowest for three-year term and 10-year term bonds respectively.