On October 15th, Evergrande successfully issued 20 billion yuan of non-public corporate bonds, setting a record as the largest issuance of domestic private placement bonds.

The private placement bonds include 3+2-year bonds and 5-year bonds. Among them, the 17.5 billion yuan of 3+2-year bonds offer an interest rate of 7.38%, and the 2.5 billion yuan of 5-year bonds offer an interest rate of 7.88%. The bonds will be issued by underwriters such as Guotai Junan Securities, China Securities, China Merchants Securities and other leading domestic securities companies. CCXR, the most authoritative domestic rating agency, has granted the bonds of Evergrande the highest AAA credit rating.

Evergrande’s bond issuance this time is so warmly welcomed by the market that the bonds were oversubscribed by 4 times. The industry believes that the Evergrande’s once again successful issuance of bonds following the issuance of 20 billion yuan of corporation bonds in June reflects that the mainland investors have a clearer understanding of the strength and potential of such kind of domestic leading enterprise as Evergrande.  

Analysis suggests that the outstanding fundamental is the main reason why Evergrande is continuously welcomed by investors. In the first half of 2015, Evergrande achieved a turnover of 77.74 billion yuan, a net profit of 13.29 billion yuan, and a profit of 10.16 billion yuan from core business, with a number of business indicators ranking No. 1 across China. In the first three quarters of this year, its sales reached 128.7 billion yuan, completing nearly 90 percent of the target.