the bond was issued at a size of rmb 3 billion with a 3 year tenor and a coupon rate of 1.95%, which was 50 basis points lower than the initial price guidance. the issuance drew active participation from diverse domestic and foreign institutional investors including banks, securities firms, asset management institutions and insurance companies, with a peak over subscription ratio exceeding 4.3 times. the debut of offshore bond issuance by the shanghai free trade zone branch of industrial bank signifies further expansion of the scope of yulan issuers, opening a new channel for offshore financing by financial institutions in the free trade zone.
under the guidance of the people’s bank of china, via cross border connectivity mechanisms between shch and international financial market infrastructures such as euroclear bank, yulan issuance model provides chinese issuers with an efficient and transparent offshore bond financing channel, and continuously improve its service toolkit covering multi-currency denomination, multi-market listing and fullcycle issuance services. to date, yulan issuers fully cover chinese funded financial institutions and non financial enterprises, with cumulative issuance volume exceeding rmb 22 billion and a yearonyear growth rate of over 40% in 2025.
this joint effort between shch and the shanghai free trade zone branch of industrial bank to deliver the first bond by a free trade zone institution under yulan issuance model leverages the synergy between shanghaibased financial market infrastructure and joint stock commercial banks. it serves as another practical example for shanghai to enhance its global resource allocation capacity and build an international financial center, and injects new momentum into exploring the offshore rmb bond market and fostering an offshore rmb asset pool.
going forward, centering on serving the overall strategy of rmb internationalization and the development of shanghai as an international financial center, shch will strengthen crossborder financial market infrastructure connectivity and further expand the brand influence of yulan issuance model.
