Beijing company issues long-term sci-tech innovation bond

Beijing-based Zhongguancun Capital has issued the first medium- to long-term sci-tech innovation corporate bond on the Beijing Stock Exchange (BSE), the bourse said.

The 1.5 billion yuan ($210 million) project was approved for registration by the China Securities Regulatory Commission (CSRC) on Aug. 29. It is the first such bond for equity investment institutions to be cleared under the exchange's new policy.

The initial tranche amounts to 500 million yuan, carries a five-year maturity and a 2.29% interest rate, marking a nationwide low for similarly rated bonds since September. SPD Bank, Huaxia Bank and Bank of Beijing participated in the offering.

Zhongguancun Capital, a wholly owned subsidiary of Zhongguancun Development Group, serves as an investment platform for technology innovation. The firm specializes in early-stage, small-scale and long-term investments in hard technology, providing "patient capital" to support tech startups throughout their lifecycles.

Of the 500 million yuan raised, 395 million yuan is earmarked for new investments or to support ongoing projects in technology innovation, with priority given to strategic emerging industries such as integrated circuits, the life sciences, artificial intelligence, new energy and new materials.

The BSE is advancing a dual-driven development model for stocks and bonds. The exchange aims to strengthen links between equity and bond markets, expand bond product offerings, and promote the rollout of technology innovation and green bonds to better support the real economy.