The outbreak of COVID-19 has brought huge impacts to almost all industries. Many entities have suffered in the supply chain and operational cash flow, and seen declines in profitability and cash flow shortage. The market’s concerns about the risk of credit defaults were rising, leading to large pressure on corporate bond financing. In active response to the deployments of the CPC Central Committee and the State Council, CITIC Securities supported the fight against COVID-19 by financial means. The Company has supported clients in anti-pandemic construction, production and material sourcing, demonstrating our sense of responsibility as a major player in the finance industry and conveying the positive message of working together to overcome difficulties. In 2020, CITIC Securities, as the lead underwriter, assisted 38 issuers in completing the issuance of 45 pandemic prevention and control bonds, raising a total of RMB 135.3 billion.
The pandemic prevention and control bonds principally underwritten by the Company covered areas such as construction of designated isolation and shelter hospitals in Hubei, provision of medical services and manufacturing of medical products and instruments in major affected areas across the country, procurement and transportation of pandemic prevention and control materials, people's livelihood security, financing services and resumption of work and production. The enterprises that the Company served covered all kinds of major enterprises for pandemic prevention and control such as state-owned enterprises, privately-owned enterprises, commercial banks, securities companies and finance charter companies in 14 provinces/municipalities/autonomous regions, such as Hubei and Beijing, and relevant overseas regions.
CITIC Securities, as the lead underwriter, has underwritten the bonds of a few major enterprises in the industries of material supply and logistics transportation, such as Wu Mart and Yunda Holding, raising a total of RMB 4.1 billion, to guarantee people’s livelihood security during the pandemic. Wu Mart, a major provider of pandemic prevention and control materials in Beijing, resolutely implemented the strategy to guarantee people's livelihood and security by maintaining supply at fair prices. CITIC Securities served as the lead underwriter to underwrite Wu Mart’s bond “20 Wu Mart 03” and sold credit default swap, helping Wu Mart raise RMB 300 million for pandemic prevention and control. Yunda Holding opened a special logistics and transportation channel during the pandemic to support the pandemic prevention and control in affected areas across the country, transported pandemic prevention supplies to affected regions many times for free, and voluntarily assumed the responsibilities of transporting construction materials to the Huoshenshan and Leishenshan hospitals in Wuhan. The bond “20 Yunda Holding MTN001” principally underwritten by the Company represented the first pandemic prevention and control bond in the logistics industry, which raised RMB 500 million of pandemic prevention and control funds for Yunda Holding.
In 2020, as the lead underwriter, CITIC Securities assisted 10 issuers to complete the issuance of 10 asset-backed securities ("ABS") for pandemic prevention and control, raising a total of RMB 11.93 billion. The funds raised were used for transportation and purchasing supplies for pandemic prevention and control, environmental protection and water services, infrastructure construction and other affected industries that are essential to the national economy and people's livelihoods. Innovative models such as supply chain ABS were adopted to ease the liquidity pressure of SMEs and tide them over the pandemic.
On 14 February 2020, "CITIC Securities-Linklogis-CCCC SHEC Supply Chain Finance Special Asset-backed Plan (Pandemic Prevention and Control) (Phase II)”, as the first anti-pandemic ABS in the market, was successfully booked and issued with a scale of RMB 230 million. The term was 1 year, and the senior coupon rate was as low as 2.80%. CCCC SHEC participated in the fight against the pandemic in Wuhan, and successively undertook the construction of multiple public health projects such as Wuhan Huada Pathogenic Biosafety Laboratory, Wuhan Sports Centre Shelter Hospital and Huoshenshan Hospital. Funds raised in this project were mainly used to assist enterprises participating in the construction of pandemic prevention and control projects such as hospitals in affected areas and scientific research laboratories, and to provide timely financial support to upstream supply chain SMEs to help them resume work in an orderly manner and ensure stable production and operation.
The “20 MCC 01” corporate bond principally underwritten by CITIC Securities was issued with a scale of RMB 2 billion. The funds raised were partly used for China First Metallurgical Group, a subsidiary of China Metallurgical Group Corporation based in Wuhan, to construct shelter hospitals in Wuhan and improve related facilities and equipment of hospitals.
The outbreak of COVID-19 has brought huge impacts to almost all industries. Many entities have suffered in the supply chain and operational cash flow, and seen declines in profitability and cash flow shortage. The market’s concerns about the risk of credit defaults were rising, leading to large pressure on corporate bond financing. In active response to the deployments of the CPC Central Committee and the State Council, CITIC Securities supported the fight against COVID-19 by financial means. The Company has supported clients in anti-pandemic construction, production and material sourcing, demonstrating our sense of responsibility as a major player in the finance industry and conveying the positive message of working together to overcome difficulties. In 2020, CITIC Securities, as the lead underwriter, assisted 38 issuers in completing the issuance of 45 pandemic prevention and control bonds, raising a total of RMB 135.3 billion.
The pandemic prevention and control bonds principally underwritten by the Company covered areas such as construction of designated isolation and shelter hospitals in Hubei, provision of medical services and manufacturing of medical products and instruments in major affected areas across the country, procurement and transportation of pandemic prevention and control materials, people's livelihood security, financing services and resumption of work and production. The enterprises that the Company served covered all kinds of major enterprises for pandemic prevention and control such as state-owned enterprises, privately-owned enterprises, commercial banks, securities companies and finance charter companies in 14 provinces/municipalities/autonomous regions, such as Hubei and Beijing, and relevant overseas regions.
CITIC Securities, as the lead underwriter, has underwritten the bonds of a few major enterprises in the industries of material supply and logistics transportation, such as Wu Mart and Yunda Holding, raising a total of RMB 4.1 billion, to guarantee people’s livelihood security during the pandemic. Wu Mart, a major provider of pandemic prevention and control materials in Beijing, resolutely implemented the strategy to guarantee people's livelihood and security by maintaining supply at fair prices. CITIC Securities served as the lead underwriter to underwrite Wu Mart’s bond “20 Wu Mart 03” and sold credit default swap, helping Wu Mart raise RMB 300 million for pandemic prevention and control. Yunda Holding opened a special logistics and transportation channel during the pandemic to support the pandemic prevention and control in affected areas across the country, transported pandemic prevention supplies to affected regions many times for free, and voluntarily assumed the responsibilities of transporting construction materials to the Huoshenshan and Leishenshan hospitals in Wuhan. The bond “20 Yunda Holding MTN001” principally underwritten by the Company represented the first pandemic prevention and control bond in the logistics industry, which raised RMB 500 million of pandemic prevention and control funds for Yunda Holding.
In 2020, as the lead underwriter, CITIC Securities assisted 10 issuers to complete the issuance of 10 asset-backed securities ("ABS") for pandemic prevention and control, raising a total of RMB 11.93 billion. The funds raised were used for transportation and purchasing supplies for pandemic prevention and control, environmental protection and water services, infrastructure construction and other affected industries that are essential to the national economy and people's livelihoods. Innovative models such as supply chain ABS were adopted to ease the liquidity pressure of SMEs and tide them over the pandemic.
On 14 February 2020, "CITIC Securities-Linklogis-CCCC SHEC Supply Chain Finance Special Asset-backed Plan (Pandemic Prevention and Control) (Phase II)”, as the first anti-pandemic ABS in the market, was successfully booked and issued with a scale of RMB 230 million. The term was 1 year, and the senior coupon rate was as low as 2.80%. CCCC SHEC participated in the fight against the pandemic in Wuhan, and successively undertook the construction of multiple public health projects such as Wuhan Huada Pathogenic Biosafety Laboratory, Wuhan Sports Centre Shelter Hospital and Huoshenshan Hospital. Funds raised in this project were mainly used to assist enterprises participating in the construction of pandemic prevention and control projects such as hospitals in affected areas and scientific research laboratories, and to provide timely financial support to upstream supply chain SMEs to help them resume work in an orderly manner and ensure stable production and operation.
The “20 MCC 01” corporate bond principally underwritten by CITIC Securities was issued with a scale of RMB 2 billion. The funds raised were partly used for China First Metallurgical Group, a subsidiary of China Metallurgical Group Corporation based in Wuhan, to construct shelter hospitals in Wuhan and improve related facilities and equipment of hospitals.