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ePrime Northbound Primary Service Supports the Crossborder Subscription of China Development Bank Infrastructure-Themed Financial Bonds

20 March 2023

ePrime Northbound Primary Service facilitated offshore investors’ crossborder subscription of China Development Bank’s RMB 3 billion 20-year infrastructure-themed financial bonds issued on 16 March. The deal was priced at a 3.29% yield with a subscription multiple of 10.33. In addition to providing a seamless digital subscription process to offshore investors, ePrime served as an interconnector between onshore and offshore capital markets by providing the issuance details to offshore investors before the deal went live.

The capital raised from this issuance will be used in the project to channel water from the Yangtze River to the Hanjiang River as part of the middle route of the South-to-North Water Diversion project and other key water infrastructure projects.

A representative from CDB’s Treasury and Financial Market Department commented that the recent issuance of 20-year infrastructure-themed financial bonds aims to provide long-term and stable financial support for water infrastructure projects by actively guiding social capital via market-oriented capital-raising methods. Moving forward, CDB will utilize development financing by exploring thematic bond issuances around the five key areas of infrastructure and continuing to welcome offshore investors’ crossborder subscriptions via iDeal and ePrime Northbound Primary Service.

A representative of China Guangfa Bank, the onshore underwriter who facilitated the crossborder subscription via iDeal, commented, “Through the usage of ePrime, offshore investors are alleviated of the tedious signing of distribution agreements offline, thereby greatly reducing the approval time of both parties and increasing the efficiency of underwriting and allocation during bond issuances.”

Mr. Tony Wang, General Manager of BCCL, commented, “This issuance addresses two national concerns, i.e., the country’s South-Flood North-Drought problem and the water resource carrying capacity. As a close collaborator of CDB, we are pleased to provide offshore investors with greater subscription convenience. In the future, we look forward to working alongside CDB in attracting more offshore investors into the primary market.”

In collaboration with CFETS and launched in October 2020, ePrime is an electronic solution for the primary bond market that spans across issuers, underwriters and investors specialized in the China cross-border workflow. It has two components to cater for issuance and subscription applications: ePrime Issuance Service and ePrime Northbound Primary Service.

ePrime Northbound Primary Service allows international investors to participate in the Northbound subscription of CIBM new issuances with onshore underwriters through the connectivity between ePrime and iDeal. It supports the crossborder subscription of various types of bonds, such as CGBs, PFBs, green financial bonds, MTNs, CP/SCPs etc, with 49 international investors onboarded.

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