It is leant on August 6th that Yichang Fangtou Company had successfully issued a non-public oriented debt financing tool (hereinafter referred to as privately raised company bonds) that was jointly underwritten by China CITIC Bank and Guo Tai Jun’an Securities, and they had raised 1 billion RMB of capital for the affordable housing construction in Yichang City. It was the first privately raised company bond of affordable housing, which was a successful start for the construction capital of affordable housing.

It is also learnt that the privately raised company bonds of Yichang Fangtou Company had been declared in October, 2013, officially registered on June 18th, 2015 and successfully issued on August 3rd.Having been rated by Shanghai Brilliance Credit Rating & Investors Service Co., Ltd., the rating of Yichang Fangtou Company was evaluated as AA grade, and the privately raised company bond this time was evaluated as AA grade. Showed as the first stage issuing notice of non-public oriented debt financing tool by Yichang Fangtou Company in 2015, the duration of this privately raised company bond for affordable housing was 3+2 (year) with an annual interest rate of 6.38% (It was lower than the average issuing interest rate this year.), and the raised capital would be specially used for the project construction of affordable housing in Yichang.

It was known that privately raised company bonds took a long financing time but the cost is low. Since this year, Five-Year AA-Grade privately raised company bonds have been totally issued for 21 phases with an average issue price of 6.84 and the highest price of 7.8.From the view of dead level, only five privately raised company bonds were lower than 6.38, among which, the issue price of four bonds was 6.30, and all of these four bonds were issued before April this year. When the bonds this time were being issued, Yichang Fangtou Company grasped the fund trend of capital market in due time and issued this bonds as an interest rate that was lower than average market level at that time on August 3rd. The carry interest had been credited into the account on August 4th, so it reduced the financing cost for the construction of affordable housing. (Reporter Yang Chunyan, Correspondent Li Ya)