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Orient Securities Issued China’s 1st Poverty-Relief Corporate Bond
Citi Orient Securities, the subsidiary of Orient Securities, issued China’s 1st poverty-relief corporate bond on Nov. 3rd, 2017 in Shanghai Stock Exchange. This project is an important part of Orient Securities’ contribution to accurate poverty relief and it’s also a kind of innovation in China’s financial market.
Recently, Orient Securities and Wufeng County in Hubei Province had signed an agreement of cooperation for accurate poverty relief. This corporate bond will help Orient Securities to change the mode of poverty relief from “massive” to “accurate” and from “blood transfusion by central government” to “blood production by local efforts”.
Mr. Pan Xinjun, the Party Secretary and Chairman of Orient Securities, attended the listing ceremony and delivered a speech. He said that this corporate bond is a kind of financial innovation in China, it leveraged the financing advantage of capital market, made full use of marketization, accurately met local demand and won good reputation in industry. He believed that this project would further strengthen the endogenous motivation of economic development in poverty-stricken area. At mean time, Mr. Pan also introduced the company’s efforts for poverty relief. Up to now, Orient Securities had signed agreement of cooperation for poverty relief with 6 national poverty-stricken county and took its advantage of resource and technology to actively explore good opportunity in industry and financial cooperation. In industry cooperation, the company delegates had visited Moqi in Hulun Buir for many times, selected the China lantern plant as the key plant of industry cooperation and established a model base of plant cultivating. So far, the first batch of China lantern plant produced by this model base had been widely sold across the nation and received good feedback from the society. In financial cooperation, the company completed bond financing projects with the amount of RMB 7.495 billion of poverty-stricken area.
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This corporate bond planned to issue RMB 0.5 billion in total with the 1st phase of RMB 0.3 billion for 7 years and interest rate of 7%. The capital raised by this corporate bond will be directly used to help 12132 poor residents from 4125 families. They will get better safety protection of housing, drinking water, transportation and electricity.