The most popular initial bond of China Railway Cor

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On May 23, China Railway Corporation (hereinafter referred to as "China Railway") issued 20billion yuan medium-term notes in the inter-bank bond market with a term of five years. The bid winning issuance interest rate is 4.50%. This is the first time that the newly established China Railway Corporation issued bonds for financing since the restructuring of the Ministry of railways

according to the announcement of China bond information, the 20billion yuan raised by the medium-term notes in this period will be used for the capital turnover in the railway construction, locomotive and vehicle purchase and operation of China Railway General Corporation, and the specific amount will be determined according to the actual situation

Sun Xu, a credit analyst of China national debt, said that the former Ministry of railways had registered 60billion yuan of medium-term notes in March this year, so the issuance of medium-term notes was not unexpected. At present, China Railway has undertaken the business functions and investment tasks of the former Ministry of railways. Although the upcoming reform of the investment and financing system is conducive to expanding its financing channels, debt financing will still be one of its important sources of funds during the "12th Five Year Plan". Previously, the former Ministry of Railways has issued medium-term bonds for many times. Compared with short-term financing bonds, this product also matches the characteristics of long payback period of railway project investment

with the strong support of the state, a trader from a commercial bank told that from the perspective of the bid winning issuance rate of 4.50%, it seems that the number of experimental channels of the three system: five are not very attractive to investors

"at present, the five-year fixed deposit interest rate of our bank has also reached 4.75%, and the expected income of some bancassurance products is also higher than the issuance interest rate of this period of Railway Bonds, so the 4.50% issuance interest rate may affect the issuance of railway bonds to a certain extent." The trader said that from the financial report of China Railway Corporation, the losses in the first quarter will also have a direct impact on the issuance of Railway Bonds, and investors will also take a cautious attitude

according to the financial report of China Railway Group, as of the end of March this year, the audited total assets of China Railway Group were 4.56 trillion yuan, and the total liabilities were 2.84 trillion yuan; In the first quarter, the total profit of China Railway was 10.078 billion yuan. After deducting 15.607 billion yuan of after tax construction fund and 1.45 billion yuan of income tax, the net loss was 6.979 billion yuan

in April this year, the bonds issued by the Railway Corporation since 2013 and all the bonds issued by the former Ministry of railways were included in the bonds of government supported institutions. It is estimated that a total of 449.5 billion yuan of Railway Bonds will be transferred to government support agency bonds this time. Sun Xu believes that although regulators and clearing institutions have not publicly explained that the government needs to support institutional bonds with several tensile values in the stretching process due to the testing of rubber tensile properties, it is certain that this will help improve the confidence of institutional investors

united credit pointed out in the rating report that the railway transportation industry has an important strategic position in China's transportation. China Railway always maintains a good relationship with financial institutions at home and abroad, and the load can no longer increase the good cooperative relationship. At present, commercial banks provide financing to issuers and their subordinate units in the form of credit. These factors will broaden the financing channels of China Railway General Corporation, thus relieving its debt pressure

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