With the strong support from the relevant authorities and regulators, China Huarong (the “Company” or “Huarong”) successfully priced its US$1.9bn offshore senior bond offering on May 23. It is the Company’s largest offshore financing in the last 2 years and the largest USD bond offering at the lowest cost by a Chinese asset management company since February 2018. In addition, it is the largest USD bond offering in Asia ex-Japan by a financial institution and the largest USD bond offering by a Chinese state-owned enterprise since September 2018.

　　The US$1.9bn bond offering comprises of a US$300mm 3-year fixed-rate tranche, a US$900mm 5-year fixed-rate tranche and a US$700mm 10-year fixed-rate tranche. This offering attracted orders from a large number of globally renowned fund managers and high-quality investors, driving the peak oversubscription ratio to over 5x and the final oversubscription ratio to 2.95x. Despite the volatile market conditions, the Company seized a favorable market window and outperformed its peers by the total issuance size, reflecting investors’ confidence in the “New Huarong” in terms of its credit quality and demonstrating the Company’s good market image.

　　Being the largest financing in international capital markets since the kick-off of the strategic transformation, the issuance optimized Huarong’s debt financing structure, diversified its financing channels and improved the its USD bond yield curve. Huarong will capitalize on the successful bond offering to further enhance its business development and management, strengthen its core business and facilitate its high-quality turnaround into the “New Huarong”, laying a solid foundation for the Company’s sound and sustainable growth.